Deutsche Bank and MortgageIT admitted responsibility for certain conduct alleged in the complaint, including that MortgageIT didn't conform to all applicable government regulations. The bank also admitted that it submitted certifications to the Department of Housing and Urban Development stating that certain loans were eligible for Federal Housing Administration mortgage insurance, when in fact they weren't.
"We are very pleased to have reached this settlement, for which we have already fully reserved and to put this issue behind us. This marks a significant step in resolving our mortgage-related exposures," Deutsche Bank said.
The deal is the fourth major settlement struck by the U.S. this year under the False Claims Act, which allows the government to seek three times the losses suffered by HUD, as well as punitive and other damages. The U.S. has collected almost $1.5 billion in penalties in those suits.
Source:
americanbanker.com
