Deutsche Bank will shell out $202 million to settle claims
it deceived the U.S. government about the strength of home loans it was
approving under a taxpayer-backed mortgage program.
The government endured $368 million in losses after a
subsidiary of Deutsche Bank approved more than 39,000 borrowers for the Federal
Housing Administration's Direct Endorsement Lender program. The FHA, which helps fuel the mortgage market
by providing loans that are insured by the federal government, had to pay
claims on more than 3,200 mortgages that the subsidiary, MortgageIT, approved
for that program.
The government sued in New York federal court last year
seeking damages under the False Claims Act and alleging that the company
repeatedly filed false certifications to the government. In the settlement, the
company “admitted, acknowledged and accepted responsibility for certain conduct
alleged,” the government said….
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