Deutsche Bank AG (DBK), Germany’s biggest bank, was sued for more than $1 billion by the U.S. government, which claims it “repeatedly lied” so that thousands of risky mortgages qualified for a government insurance program.
The Frankfurt-based bank and its MortgageIT unit falsely certified that borrowers didn’t face risk of default, qualifying the loans for insurance by the Housing and Urban Development Department’s Federal Housing Administration, according to a complaint filed today in Manhattan federal court.
The bank and MortgageIT masked problem loans through “egregious” violations of HUD rules for analyzing the income and creditworthiness of borrowers, the Justice Department said. MortgageIT endorsed more than 39,000 loans for FHA insurance after 1999, making them “highly marketable for resale,” the U.S. said. Of those, 12,500 defaulted.
http://www.bloomberg.com/news/2011-05-0 ... tices.htmlThe Frankfurt-based bank and its MortgageIT unit falsely certified that borrowers didn’t face risk of default, qualifying the loans for insurance by the Housing and Urban Development Department’s Federal Housing Administration, according to a complaint filed today in Manhattan federal court.
The bank and MortgageIT masked problem loans through “egregious” violations of HUD rules for analyzing the income and creditworthiness of borrowers, the Justice Department said. MortgageIT endorsed more than 39,000 loans for FHA insurance after 1999, making them “highly marketable for resale,” the U.S. said. Of those, 12,500 defaulted.
don't get me wrong, if deutsche bank did this, I hope the government wins the suit. That said, I guess the only let American banks get away with stealing, huh?
