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. The settlement will be paid by the servicers responsible for the Los Angeles properties at issue and by the securitization trusts that hold the properties. As part of the resolution, the servicers will continue to work with the City to maintain these properties and Deutsche Bank as trustee will continue to intermediate between the City and the servicers.
Deutsche Bank is not contributing any funds toward the settlement. As we have said from the outset, loan servicers are responsible for maintaining foreclosed properties. Deutsche Bank did not admit any liability or wrongdoing as part of the settlement, and continues to dispute the claims asserted by the City.
The settlement is subject to court approval, but we believe this resolution is the best outcome for the City of Los Angeles, the securitization trusts and their investors.