WBK Industry News - Litigation Developments

FDIC Seeks to Recover WAMU’s Losses for Residential Mortgage Settlement

As Receiver for failed bank Washington Mutual (WAMU), the FDIC has been recently sending demands for indemnification of losses to residential mortgage companies. The losses for which the FDIC is seeking indemnification stem from a June 30, 2017, settlement between WAMU, Deutsche Bank National Trust Co. (Deutsche Bank), and JPMorgan Chase Bank, N.A., (JPMorgan) under which WAMU paid JPMorgan $645 million and gave Deutsche Bank an unsecured receivership claim of $3 billion. The FDIC struck this deal with Deutsche Bank and JPMorgan to settle claims for up to $10 billion in damages arising from WAMU’s alleged breach of representations and warranties made in connection with mortgages sold to securitized trusts.