McLEAN, Va. — Deutsche Bank AG will pay $1.92 billion to settle a mortgage-backed securities dispute with the Federal Housing Finance Agency, on behalf of Fannie Mae and Freddie Mac.

The agency, which oversees the two government-controlled mortgage finance companies, sued 17 financial institutions over their sales of mortgage securities to Fannie and Freddie that soured when the housing market collapsed.

FHFA alleged that between 2005 and 2007 Deutsche Bank did not provide adequate disclosure about some residential mortgage-backed securities sold to Fannie and Freddie.

First Published December 21, 2013, 5:00 a.m.