Deutsche Bank to pay $202m in mortgag...

Deutsche Bank to pay $202m in mortgage fraud case

There are 3 comments on the The New Zealand Herald story from May 11, 2012, titled Deutsche Bank to pay $202m in mortgage fraud case. In it, The New Zealand Herald reports that:

Selling risky US mortgages through a subsidiary has ended with Deutsche Bank paying $US202m to settle civil fraud charges.

Join the discussion below, or Read more at The New Zealand Herald.

mr Micheal dean


#1 May 12, 2012
I am Michael Dean by name and I offer loans at low rate, so if interested, contact me at
[email protected]

United States

#4 Oct 14, 2012
Be careful. The ONLY people on this site are SCAMMERs. They will tell you they do not require any fees....but just when they have you convinced you will get your loan, they will have some sort of issue and will need you to send "insurance fees, wire fees, transfer fees, finder fees, bank fees" etc.

DON'T EVER SEND THEM MONEY!!!! For any reason, you will lose your money and NEVER get your loan. People on this site have even been threatened when they got to the end and refused to pay a fee....Do not buy their BS...ONLY SCAMMERS HERE!!!

You are asking for a loan...why would you have to give them money? It does not make any sense. Don't fall for their schemes and scams.

“Reverse mortgage loan Texas”

Since: Sep 12

Kingwood, TX

#6 Oct 28, 2012
NEW YORK (AP)-- Deutsche Bank agreed to pay $202 million to settle civil fraud charges brought by the federal government over the practices of a subsidiary it acquired five years ago, authorities announced Thursday.

A federal judge in Manhattan approved the deal reached by representatives of the Frankfurt, Germany-based bank and the government.

Under the agreement, Deutsche Bank AG admitted that it didn't follow all federal housing regulations when it made substantial profits between 2007 and 2009 from the resale of risky mortgages through its subsidiary MortgageIT.

According to the agreement, Deutsche Bank admitted that it was in a position to know that MortgageIT's operations did not conform fully to all of the government's regulations, policies and handbooks. The subsidiary employed more than 2,000 people at branches in all 50 states. The bank agreed to pay $202.3 million to the U.S. Department of Justice within a month.

Deutsche Bank said in a statement Thursday that it was pleased to put the issue behind it.

"This marks a significant step in resolving our mortgage-related exposures," the bank said.

The government said in its lawsuit the bank's failures caused the government to foot the bill for loans that defaulted.

MortgageIT had been a Federal Housing Administration lender operating with government oversight for almost a decade. The mortgage insurance is issued by the FHA.

The lawsuit against Deutsche Bank sought to recover more than $386 million that the Department of Housing and Urban Development has paid out in FHA insurance claims and related costs arising out of MortgageIT's approval of more than 3,100 mortgages, including 1,400 loans that have defaulted so far. It said HUD had paid more than $97 million in FHA claims and related costs arising out of more than 600 mortgages that defaulted within six months.

HUD sets the rules for the FHA mortgage insurance program, including requirements relating to the adequacy of the borrower's income to meet mortgage payments, the borrower's creditworthiness and the appropriateness of the valuation of the property being purchased.

The lawsuit said Deutsche Bank and MortgageIT failed to comply with HUD rules and regulations regarding required quality control procedures, and then lied about their purported compliance.

In a release Thursday, U.S. Attorney Preet Bharara said Deutsche Bank and the subsidiary "treated FHA insurance as free government money to backstop lending practices that did not follow the rules."

He said the compensation agreed to by Deutsche Bank will significantly compensate HUD for the losses it incurred.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Mortgage Discussions

Title Updated Last By Comments
Can you afford your next home? Feb 23 Frank 3
News They paid premiums, so why must they fight for ... Feb 22 Tea Bag Residue C... 2
News 'Dance Mom' should be imprisoned for fraud, pro... Feb 13 fayrae 1
News Steve Mnuchin Defends Octomom's Mortgage in Sen... Feb 11 Texxy the Selfie Cat 1
News Guthrie PD Investigates Suspicious Activity On ... Feb 10 scary 2
News Churches without the church (Jun '09) Feb 9 dollarsbil 22
News Mnuchin Treasury Hearing May Be Dominated by 'F... Feb 4 EquitableProperty... 1
More from around the web