Goldman Sachs has reached agreements with the Federal Housing Finance Agency to resolve all claims brought by the FHFA with respect to residential mortgage-backed securities purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

Goldman Sachs has reached agreements with the Federal Housing Finance Agency to resolve all claims brought by the FHFA with respect to residential mortgage-backed securities purchased by Fannie Mae and Freddie Mac between 2005 and 2007.

Goldman is repurchasing the residential mortgage-backed securities for $3.15 billion; the US firm will pay approximately $2.15 billion to Freddie Mac and approximately $1 billion to Fannie Mae.

“The costs of resolving these matters are substantially covered by reserves as of the second quarter of 2014,” Goldman Sachs said in a statement.

In 2011, the FHFA initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in the sale of private-label securities to Fannie Mae and Freddie Mac.  The settlement with Goldman Sachs is the sixteenth reached thus far.