Saturday, December 21, 2013

Deutsche Bank to pay $1.9 billion over mortgage securities - Business - The Boston Globe

Deutsche Bank to pay $1.9 billion over mortgage securities - The Boston Globe
"Deutsche Bank agreed Friday to pay about $1.9 billion to settle claims that it had misled Fannie Mae and Freddie Mac over the quality of home loans bundled into mortgage-backed securities, becoming the latest big bank to reach a settlement with federal housing regulators.
The bank, based in Germany, is the sixth entity to reach a settlement with the Federal Housing Finance Agency, which had sued 18 banks and financial institutions in September 2011. The agency says the institutions misled Fannie and Freddie before the financial crisis over the creditworthiness of borrowers and the quality of the loans that were packaged into securities. The agency is seeking to recoup some of $196 billion that Fannie and Freddie had spent buying up the private-label mortgage-backed securities."

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