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Fed Accuses Major Bank of Mortgage Fraud

The federal government is suing Deutsche Bank, accusing the bank of committing fraud by repeatedly lying to the government and for reckless lending practices in underwriting thousands of federally insured mortgages that ultimately cost taxpayers hundreds of millions of dollars.

U.S. Attorney Preet Bharara said the bank “repeatedly and brazenly” took part in shoddy lending practices for mortgages “that were really ticking time bombs.” Bharara says sometimes the bank even failed to verify that a mortgage applicant even was employed. “In fact, they often seemed to treat red flags as if they were green lights. … While the homes the defendants issued loans for may have been built on solid ground, the defendants’ lending practices were built on quicksand.”

To read more go to http://www.realtor.org/RMODaily.nsf/pages/News2011050402?OpenDocument

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