MCLEAN, Va. – In a story Dec. 20, 2013 about Deutsche Bank settling a lawsuit brought by the Federal Housing Finance Agency on behalf of Fannie Mae and Freddie Mac, The Associated Press erroneously reported that the FHFA sued a total of 17 banks over sales of mortgage-backed securities that soured when the housing market collapsed.
The agency sued 18 banks in total, including UBS in July 2011 and 17 more in September 2011.
A corrected version of the story is below:
Deutsche Bank to pay $1.92B in settlement
Deutsche Bank to pay $1.92B to settle mortgage-backed securities dispute with Fannie, Freddie
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 18 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.
“This settlement is another important step in our efforts to recover funds for the nation’s taxpayers,” Freddie Mac CEO Donald H. Layton said in a statement. “We will continue to work with FHFA on resolving the remainder of our legacy repurchase and litigation issues through equitable agreements.”
Deutsche Bank has exited the mortgage businesses that gave rise to the claims.
Shares of Deutsche Bank AG added 49 cents to $46.44 by midmorning Friday, in line with broader market movement.