Deutsche Bank To Pay $1.9B In Freddie Mac Settlement

Posted by Patrick Barnard on December 20, 2013 No Comments
Categories : Residential Mortgage

14775_picresized_1387569766_152988178 Deutsche Bank To Pay $1.9B In Freddie Mac Settlement Government-sponsored enterprise (GSE) Freddie Mac, in conjunction with Fannie Mae and the Federal Housing Finance Agency (FHFA), has entered into an agreement with Deutsche Bank Securities Inc. and certain affiliated entities (collectively, Deutsche Bank) to settle claims related to investments by Freddie Mac and Fannie Mae in certain residential non-agency mortgage-related securities.

The agreement will settle litigation previously initiated by the FHFA against Deutsche Bank and also certain repurchase obligations with respect to the loans in these securities, according to Freddie Mac.

The GSE says Deutsche Bank will make a total payment of $1.925 billion, of which approximately $1.628 billion is expected to be paid to Freddie Mac and will be reflected in the company's fourth quarter results.

‘This settlement is another important step in our efforts to recover funds for the nation's taxpayers,’ comments Donald H. Layton, CEO of Freddie Mac. ‘We will continue to work with FHFA on resolving the remainder of our legacy repurchase and litigation issues through equitable agreements.’

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