12:26 ET<\/span><\/span><\/p>\nThe US Justice Department has sued Deutsche Bank for more than $1bn (\u00a3600m) for defrauding the government.<\/p>\n
The complaint says Deutsche’s MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans.<\/p>\n
FHA rules say lenders must make sure the borrower will be able to repay the loan, but the Justice Department claims Deutsche did not do so.<\/p>\n
A Deutsche spokesperson described the claims as “unreasonable and unfair”.<\/p>\n
“We intend to defend against the action vigorously,” she added.<\/p>\n
The lawsuit is one of the first targeting mortgage lenders under the federal False Claims Act.<\/p>\n
The government says that between 1999 and 2009, MortgageIT endorsed more than 39,000 mortgages for FHA insurance.<\/p>\n
It says that the lender had powerful incentives to generate as many FHA-insured loans as it could so that it could then sell them on to investors.<\/p>\n
Deutsche Bank bought MortgageIT for $430m in 2007.<\/p>\n
The government said it had paid out more than $386m in FHA insurance claims and related costs.<\/p>\n
The global financial crisis was sparked by mortgages being given to people who could not afford them, with the debt then being repackaged and sold on to investors.<\/p>\n
The US government has been trying to hold the mortgage industry responsible for the crisis as well as the housing slump and large numbers of foreclosures.<\/p>\n<\/div>\n
Follow this link:
\nUS accuses Deutsche Bank of lying<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" 3 May 2011 Last updated at 12:26 ET The US Justice Department has sued Deutsche Bank for more than $1bn (\u00a3600m) for defrauding the government. The complaint says Deutsche’s MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans. <\/p>\n","protected":false},"author":0,"featured_media":415853,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":{"0":"post-416481","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-entertainment"},"yoast_head":"\n
US accuses Deutsche Bank of lying - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"US accuses Deutsche Bank of lying - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"3 May 2011 Last updated at 12:26 ET The US Justice Department has sued Deutsche Bank for more than $1bn (\u00a3600m) for defrauding the government. The complaint says Deutsche's MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans.\" \/>\n<meta name=\"twitter:creator\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:site\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"US accuses Deutsche Bank of lying\",\"datePublished\":\"2011-05-03T16:26:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/\"},\"wordCount\":238,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage\"},\"thumbnailUrl\":\"\",\"articleSection\":[\"Entertainment\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/\",\"name\":\"US accuses Deutsche Bank of lying - Ghanamma.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2011-05-03T16:26:37+00:00\",\"author\":{\"@id\":\"\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/\",\"name\":\"Ghanamma.com\",\"description\":\"News In Ghana - Latest Ghana News Headlines\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"US accuses Deutsche Bank of lying - Ghanamma.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/","twitter_card":"summary_large_image","twitter_title":"US accuses Deutsche Bank of lying - Ghanamma.com","twitter_description":"3 May 2011 Last updated at 12:26 ET The US Justice Department has sued Deutsche Bank for more than $1bn (\u00a3600m) for defrauding the government. The complaint says Deutsche's MortgageIT subsidiary lied in order to get Federal Housing Administration (FHA) insurance for its loans.","twitter_creator":"@ghanamma","twitter_site":"@ghanamma","twitter_misc":{"Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#article","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/"},"author":{"name":"","@id":""},"headline":"US accuses Deutsche Bank of lying","datePublished":"2011-05-03T16:26:37+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/"},"wordCount":238,"commentCount":0,"image":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage"},"thumbnailUrl":"","articleSection":["Entertainment"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/","url":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/","name":"US accuses Deutsche Bank of lying - Ghanamma.com","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage"},"image":{"@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage"},"thumbnailUrl":"","datePublished":"2011-05-03T16:26:37+00:00","author":{"@id":""},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.ghanamma.com\/2011\/05\/03\/us-accuses-deutsche-bank-of-lying\/#primaryimage","url":"","contentUrl":""},{"@type":"WebSite","@id":"https:\/\/www.ghanamma.com\/2011\/#website","url":"https:\/\/www.ghanamma.com\/2011\/","name":"Ghanamma.com","description":"News In Ghana - Latest Ghana News Headlines","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/416481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/comments?post=416481"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/416481\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/415853"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/media?parent=416481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/categories?post=416481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/tags?post=416481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}