The Financial Industry Regulatory Authority (FINRA) fined Deutsche Bank Securities $7.5 million for negligently misrepresenting delinquency data in connection with the issuance of subprime securities, the regulator said today.

FINRA claims that Deutsche negligently misrepresented and underreported the percentages of mortgages that were delinquent in the prospectus supplements of six subprime RMBS issued in 2006. Additionally, the firm failed to correct errors by a third party vendor and servicers, which allegedly underreported the historical delinquency rates of the mortgages in connection with its offer and sale of 16 other subprime MBS issued in 2007. The company also failed to create a system to supervise its reporting of required historical delinquency information, according to FINRA.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.