Deutsche Bank Settles Mortgage Lawsuit For $32.5 Million

Posted by Orb Staff on March 27, 2012 No Comments
Categories : Residential Mortgage

11178_lawsuit Deutsche Bank Settles Mortgage Lawsuit For $32.5 Million Germany's Deutsche Bank AG will pay $32.5 million to settle claims that it intentionally misled U.S. investors about the quality of the mortgages that supported a 2006 pass-through certificate series.

According to a Bloomberg News report, the investors – which include the Massachusetts Bricklayers and Masons Trust Funds – claimed that offering documents that accompanied Deutsche Bank's pass-through certificates contained inaccurate information, and that nearly half of the loans underlying one of the certificate series were already delinquent or foreclosed on.

The investors have filed a motion in federal court seeking a preliminary approval of the settlement. Attorneys representing the investors say that the proposed settlement provides a ‘substantial monetary benefit to the settlement class.’

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