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.