Deutsche Bank to pay $1.92B in mortgage settlement

McLEAN, Va. - 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.

Comments

Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

Market News

Stock Watchlist

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.

Download
The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App