Deutsche Bank AG said servicers and securitization trusts will pay Los Angeles $10 million in a settlement of a lawsuit that had accused the bank of letting foreclosed properties in the city fall into disrepair.
“We are pleased that we could bring together the relevant parties to help facilitate a resolution of this matter for the City of Los Angeles,” Deutsche Bank said today in a statement. “As we have said from the outset, loan servicers are responsible for maintaining foreclosed properties.”
Los Angeles sued the Frankfurt-based bank in May 2011, after it, as trustee for mortgage-backed securities, acquired title to thousands of properties in the city that fell into foreclosure because of the collapse of the U.S. housing market. The bank didn’t admit liability or wrongdoing in the settlement, it said.
The city and Deutsche Bank obtained the agreement of the loan servicers that housing code enforcement agencies will have immediate access to people at servicing banks to address code violations, Los Angeles City Attorney Carmen Trutanich said in a separate statement.
“I want to thank Deutsche Bank for working with this Office to find a solution to a problem that has plagued this city for far too long,” Trutanich said.
The case is People v. Deutsche Bank National Trust Co., BC460878, Superior Court of California (Los Angeles).