US files suit against Deutsche Bank alleging mortgage fraud

The Jurist

US Attorney Preet Bharara filed a civil suit on Tuesday against Deutsche Bank in the US District Court for the Southern District of New York accusing the bank of engaging in mortgage fraud. Through the suit, the US seeks more than $1 billion including punitive damages and fines.

Specifically, the complaint alleges that, from 1999 to 2009, Deutsche Bank consistently lied to the Federal Housing Administration (FHA) in order to obtain and maintain the Direct Endorsement Lender (DEL) status of its subsidiary, MorrgageIT.

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