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Government accuses Deutsche Bank of mortgage fraud

U.S. prosecutors are suing Deutsche Bank and accusing it of fraudulently approving mortgages over a number of years in ways that have ended up costing the government hundreds of millions of dollars.

The lawsuit filed Tuesday morning in Manhattan federal court says that Deutsche Bank and its subsidiary, MortgageIT, lied to the government and “recklessly” approved mortgages for federal mortgage insurance without fully vetting the quality of the mortgages.

From 1999 to 2009, MortgageIT was part of a government program that allowed it to approve home loans for Federal Housing Administration mortgage insurance, and it ended up doing this with 39,000 mortgages worth $5 billion, according to the complaint. After Deutsche Bank acquired MortgageIT in January 2007, it marketed and sold these mortgages to investors.

Full Story: Government accuses Deutsche Bank of mortgage fraud

  • emem

    IS there something fishy about this? A foreign owned bank is the 1st one?
    A bank that was in the mortgage business for 2 years who bought a company doing business with the federal gov for 10 years?

    From a country that disagrees with us on monetary policy?

    What about Wells Fargo, Bank of America?

    verityquest is 1000% correct, why are none of the congressional co-conspiritors named?

  • verityquest

    Of course Barney Frank is named as a co-defendant? No? WHY NOT? Oh,yeah, that’s right; depending on what day it is, he either did or did not have a hand in this total debacle.

    THANKS BARNEY!

  • texan59

    That’s one way to get some of that TARP money back!! Let’s see… gov’t. wants people who can’t afford to pay for a house to have one. Loosen up requirements to lenders and make sure freddie and fannie will buy up any loans out there. Now, come back and sue the $hit out of the guys you told to make the loans in the first place. What a plan.