Deutsche Bank to pay $1.92B in settlement

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Associated Press

Posted on December 20, 2013 at 12:00 PM

Updated Friday, Dec 20 at 1:02 PM

McLEAN, Va. (AP) — Deutsche Bank will pay $1.4 billion euros ($1.92 billion) to settle a mortgage-backed securities dispute with the Federal Housing Finance Agency, on behalf of Fannie Mae and Freddie Mac.

The agency, which oversees the two government-controlled mortgage finance companies, sued 17 financial institutions over their sales of mortgage securities to Fannie and Freddie that soured when the housing market collapsed.

FHFA alleged that between 2005 and 2007 Deutsche Bank did not provide adequate disclosure about some residential mortgage-backed securities sold to Fannie and Freddie.

The agreement announced Friday resolves Deutsche Bank's single largest mortgage-related litigation case. It also includes an agreement to resolve past and future claims that seek Deutsche Bank to repurchase mortgage loans tied to some of the disputed securities.

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