A U.S. judge on Monday rejected Deutsche Bank AG's bid to dismiss a federal regulator's lawsuit accusing it of misleading Fannie Mae and Freddie Mac into buying billions of dollars of risky mortgage debt.

U.S. District Judge Denise Cote in Manhattan said the Federal Housing Finance Agency, which had sued over roughly $14.2 billion of securities, may pursue fraud claims over the German bank's representations in offering materials regarding mortgage underwriting standards.

Cote previously refused to dismiss FHFA lawsuits against Bank of America Corp's Merrill Lynch unit, JPMorgan Chase & Co and UBS AG over Fannie Mae and Freddie Mac mortgage losses.

(Reporting By Jonathan Stempel in New York; editing by John Wallace)