Archive for December, 2013
Add Deutsche Bank to the growing list of big banks that are settling up for peddling lousy mortgage-backed securities on Fannie Mae and Freddie Mac. Reuters is reporting that the German banking giant has agreed to pay $1.9 to settle claims that it defrauded the two U.S. government-controlled companies in the sale of mortgage-backed securities before the 2008 financial crisis. This comes on the heals of a $13 billion settlement recently negotiated by JPMorgan Chase arising from mortgage-backed securities that it sold Fannie Mae and Freddie Mac.
Under the settlement, Deutsche Bank will pay $1.63 billion to Freddie Mac and $300 million to Fannie Mae. Of course, Deutsche Bank does not admit to any liability as part of the settlement.
What does this mean for homeowners? Just like the recent JPMorgan settlement, not a whole lot directly. However, $1.9 billion is no small amount, and I’m encouraged by the government’s continued pursuit of the big banks despite the financial crisis now being several years in our past. Nevertheless, it’s still up to homeowners to fight for themselves if they are having problems with their mortgage company. It’s an uphill battle, but one that can be made a little easier with effective legal counsel.