WASHINGTON (AP) - Swiss banking giant UBS is paying $885 million to settle U.S. government claims that UBS violated securities laws in its sales of mortgage-backed bonds to Fannie Mae and Freddie Mac. The Federal Housing Finance Agency, which oversees the two government-controlled mortgage finance companies, announced the settlement Thursday. The agency had sued UBS and 17 other major banks over their sales to Fannie and Freddie of about $196 billion in mortgage securities that soured when the housing market collapsed in 2007. UBS will pay about $415 million to Fannie and $470 million to Freddie. The FHFA said the deal means it has now reached settlements with three of the 18 banks it sued. The agency previously settled with Citigroup and GE Capital. The others include Bank of America and JPMorgan Chase.