LIES | Deutsche Bank Knew Mortgage Co it Bought Lied: Justice Dept

Deutsche Bank knew mortgage co it bought lied: Justice Dept

(Reuters) – Deutsche Bank AG knew in 2006 that a mortgage company it was preparing to buy lied to the U.S. government about its mortgages, yet went ahead with the purchase and should be held financially responsible, the Justice Department said on Monday.

According to the department’s amended $1 billion complaint filed Monday evening with the U.S. District Court in Manhattan, Deutsche Bank was “on notice of and expressly assumed responsibility” for wrongdoing at MortgageIT Inc, which it bought in 2007.

The government first sued Deutsche Bank and MortgageIT in May saying they misled the Federal Housing Administration into believing that mortgages issued by MortgageIT qualified for federal insurance, when the quality was so poor that nearly one in three defaulted.

Deutsche Bank had previously sought to dismiss the complaint, in part by arguing that the government failed to show it assumed MortgageIT’s obligations.

But the government said the bank, in conducting due diligence prior to the merger, knew MortgageIT violated rules of the Department of Housing and Urban Development, which the FHA is part of, and made false representations to the agency.

Check out the rest here…

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4closureFraud.org

Comments
36 Responses to “LIES | Deutsche Bank Knew Mortgage Co it Bought Lied: Justice Dept”
  1. Ron Moss says:

    My case is against MortgageIYT and IndyMac and West One Plus

  2. marilyn lane says:

    @I vent

    Did you read this post Very long but very informative

    my home your not says:
    August 22, 2011 at 9:57 PM
    Oh by the way the onion did not fake this document:

    History of Banking Fraud Chapter 1 – ORIGIN OF THE MONEY POWER IN AMERICA
    The issue between these banks and the people will be joined in the near future, and the greatest struggle the world ever witnessed will take place between the usurping banks on the one hand and the people on the other

  3. marilyn lane says:

    @I vent

    Yesterday on a posting, someone responded to my comments protecting someone
    I was having a run in with about the law.

    My gut feeling told me to google his name andI came up with an individual who was
    Director and Vice President of a Securities Corporation and

    President and CEO and Trustee of a Trust, among other titles.

    Before I really told him what I thought of his intervention , I told him I googled his name
    and was that him? So far I have not had an answer.

    That seems to be how the Banksters and their associates work.

  4. marilyn lane says:

    I think there are many plants on these foreclosure blogs

    that make a living working for the Banks that are here purposely

    to confuse the issues and won’t admit that the Banks are guilty

    of outright Fraud.

    The kind of Fraud that should make the present Banking system Fail.

    When does a crook think they have stolen enough?

  5. Readdocs says:

    A good ending to a long story, but who was the unknown 3rd party involved in this case?
    http://www.baltimoresun.com/news/maryland/howard/bs-md-ho-poku-settlement-20110819,0,6911317.story

    The foreclosed homes Fannie/Freddie are selling, how many have clouded titles that were not
    cleared before being resold? How many hundreds, thousands are now corrupted? That has not
    been resolved and will come back to haunt the real estate, mortgage businesses and the federal
    government.

    • lvent says:

      Marilyn, oh yes there are plenty of those..the banksters and all of their cohorts and minions, will do anything to keep the Ponzi Scheme going for their owners. Don’t trust, verify. Then you will know who your enemies are.. When you know the truth, they can’t hurt you. There are alot of lies and deceptions in fraudclosusreland. This ain’t no party, this aint no disco, this aint no foolin around…!!

    • lvent says:

      Readdocs, they are all one giant crime syndicate..A giant octupus with many tentacles and alot of little killer squids too. To name one name is to name them all they are also know as the New World Horder….and these are their perps,minions and cohorts, this is the oligarchy that the ruling elite of the world own and control…..There are only really 4 entities who own and control this charade and I had that verified by a VERY REPUTABLE SOURCE……

  6. To Tell The Truth says:

    Check this out below…my question remains…why are the home owners not given first right of refusal to repurchase their homes? Somethind is grossly amiss here…..

    Fannie Mae fire sales dilute regional home values
    DETROIT – Aug. 22, 2011 – Fannie Mae and Freddie Mac are selling hundreds – perhaps thousands – of foreclosed properties in metro Detroit for far less than they appear to be worth, a practice that leaders say is driving down local property values and weakening neighborhoods.

    In some instances, homes listed by the government-financed mortgage giants are being snapped up by private investors, then re-sold within days or weeks for far more money.

    Local officials blame the federal government – which took control of Fannie and Freddie in 2008 at a cost to taxpayers of at least $141 billion – for doing little to stop the fire sales.

    “It’s an unconscionable practice,” said Oakland County, Mich., Treasurer Andy Meisner. “It’s fiscally irresponsible from their perspective because they’re getting pennies on the dollar, and it’s fiscally reckless from our perspective” because Fannie and Freddie “are almost single-handedly … killing our property values.”

    Meg Burns, chief of policy at the Federal Housing Finance Agency, which regulates Fannie and Freddie, acknowledged the two companies are eager to sell foreclosed homes as quickly as possible. But she said the aim is to prevent vacant homes and neighborhood deterioration, not to destroy property values.

    A Detroit Free Press investigation, including an analysis of more than 700 real estate transactions in the past year, finds that Fannie and Freddie are selling foreclosed homes, on average, for one-third less than the homes’ already-deflated market value in some areas, and at less than half of market value in other neighborhoods.

    Critics say the low list prices are part of the companies’ rush to get foreclosed homes off their books while U.S. taxpayers are still covering the mortgage giants’ losses, three years after the federal government bailout.

    In February and March, 34 Fannie and Freddie properties in Southfield, Mich., were sold by the mortgage giants for 55 percent of their market value, on average, property records show.

    In Farmington, Mich., and Farmington Hills, Mich., 30 homes sold at 66 percent of their market value.

    And 75 Fannie and Freddie homes in Warren, Mich., sold for an average of 45 percent of their market value.

    The price tags on some home sales were equally jaw-dropping. Take these examples in Oakland County:

    • A foreclosed Ferndale home with a market value of more than $70,000 was sold by Fannie for $11,100 in February.

    • A Waterford home valued at $73,000 was sold by Fannie for $8,619 in January.

    • Freddie sold a Milford Township home on 5 acres for $101,000 in 16 days. Its market value was nearly twice that: $194,300.

    Oakland County Deputy Executive Bob Daddow called the sales a “travesty” that have helped home values fall by a third since 2007, costing local governments tax revenues.

    “It crushes our budgets. … We’re completely revamping government as we once knew it,” Daddow said.

    Critics say Fannie and Freddie can sell homes far below their value because, under the terms of the companies’ 2008 taxpayer bailout, taxpayers cover the cost of their losses.

    Moreover, because the mortgage giants dominate the local market of distressed property sales, ordinary homeowners and other sellers of foreclosed homes are forced to compete with their prices, further driving down property values and local tax revenues.

    The situation is particularly acute in the region’s poorest cities. In Detroit, 49 Fannie properties sold this summer at 22 percent of market value, on average.

    And across Wayne County, Fannie Mae properties went at fire-sale prices, records show:

    • $2,500 for an Ecorse home that is valued at $60,000

    • $45,000 for a Livonia home valued at nearly $100,000

    • $11,000 for a home in Westland valued at $56,400.

    Wayne County Executive Robert Ficano said the U.S. Treasury Department, which is bailing out Fannie and Freddie, should investigate the sales and “hold people accountable for things that just don’t make common sense.”

    Similar complaints echoed from Macomb County, Mich.

    “It’s fundamentally clear to me that the federal government is … dumping them on the market,” Warren Mayor Jim Fouts said of the home sales and the blight that follows. “It’s creating some unacceptable problems for cities like Warren,” which is located in Macomb County.

    Across Macomb County, Fannie Mae appears to be selling on the cheap: $29,000 for a Fannie property in Harrison Township valued at $152,240; $18,000 for a Fannie property in Eastpointe valued at $64,120.

    Burns, the official at the Federal Housing Finance Agency, disputes that the mortgage giants are dumping homes, arguing they are merely trying to stabilize neighborhoods by keeping homes from sitting empty.

    “Our overarching concern is vacant properties sitting on the market for too long.”

    An FHFA spokeswoman, Corinne Russell, added that Fannie and Freddie have procedures to ensure that sales of foreclosed homes are “sound and that every effort is made to preserve the assets, helping to protect the community from destabilization and decline.”

    Fannie Mae spokesman Andrew Wilson said the company typically bases its listing price on an appraisal and the recommendation of a broker.

    “Once a value has been established … our marketing efforts are primarily focused on finding buyers for our properties at a price that promotes neighborhood stabilization,” he said. “Our No. 1 goal is to sell to owner-occupants who will move into the neighborhood and help to stabilize the community.”

    Wilson declined to answer other questions about Fannie’s practices or address the metro Detroit home sale data compiled by the Detroit Free Press.

    Freddie spokesman Brad German said he rejected “assertions that we’re selling at uncompetitive prices.”

    Nationally, during the first quarter of 2011, German said Freddie Mac properties sold at 92 percent of market value, as determined by market sales.

    “We stand by our pricing and marketing strategy, which is helping us minimize losses while being good stewards of taxpayer resources and supporting the housing market,” German said.

    German also took issue with the Free Press analysis, arguing that the assessed value of a home doesn’t always capture factors that can lower the price the home is eventually sold for, such as the current condition of the property and the market.

    But Dearborn, Mich., appraiser Jumana Judeh said assessed value – used in part to figure property taxes – remains “an excellent reflection of the market.”

    Wayne State University law professor John Mogk, an expert in real estate and urban development, also called assessed values a valid benchmark and “a reasonable standard to use.”

    In Michigan, the assessed value is supposed to be half the market value of a home. Independence Township, Mich., appraiser Louise Braun used twice a home’s assessed value as her benchmark to compare Fannie and Freddie sales of foreclosed homes against the sale of other single-family homes in several Oakland County communities.

    • In June, for example, Fannie and Freddie foreclosures sold at 67 percent of the market value in Berkley, on average. Non-foreclosed homes in Berkley sold at 96 percent of market value, on average.

    • Fannie and Freddie homes in Orion Township and Lake Orion sold, on average, for 70 percent of their value. Non-foreclosures sold at 114 percent of market value.

    • And in Independence Township and Clarkston, the Fannie and Freddie homes sold, on average, for 76 percent of market value, compared with the non-foreclosures that sold for 108 percent of market value, on average.

    Georgia Institute of Technology accounting professor Charles Mulford, who studies how companies report their finances, said Fannie and Freddie feel no compulsion to maximize profits now that they are controlled – and subsidized – by the government. The companies, he said, are more interested in getting troubled mortgages, including foreclosed homes, “off the books so they can start anew, making new loans, loans that are more profitable.”

    Dwayne McLachlan, president of the Michigan Assessors Association and the Pittsfield Township assessor, said the impact of depressed home sales on communities can be devastating.

    “All it takes is one low sale in a neighborhood to corrupt that market for that (subdivision) or site condo complex,” said Braun, the Independence Township appraiser.

    Time and again, area property records show, investors are snapping up low-ball listings by Fannie and Freddie and turning a quick and sizable profit, an indication that the mortgage giants are listing the homes for far too little, real estate experts said.

    Ted Phillips, executive director of the United Community Housing Coalition, a Detroit advocacy group for low-income housing, said he has seen Fannie Mae refuse to allow homeowners to stay in a home for less than what they owe on a mortgage – only to sell the property to an investor for far less than what the struggling homeowner had offered to pay.

    “Then you’ve got another slum rental property in the community. If they’re using tax dollars, why aren’t they using tax dollars efficiently?” he said.

    “Even the worst slum landlord understands that basic concept. Why wouldn’t you take the $10,000 from the homeowner? But they will take $2,000 or $3,000 from an investor?”

    Freddie Mac sold a Warren property on March 15 for $31,000. The home resold 10 days later for $45,500. The city says no building permits were pulled, indicating that it was unlikely the buyer made any big improvements before reselling the home at a 47 percent profit.

    Fannie Mae sold an Auburn Hills, Mich., home in June 2010 for $45,000. It was resold for $129,900 in January. No permits were pulled on that home, either.

    That home was among 38 Fannie and Freddie properties that were resold, or “flipped,” in Oakland County during the first four months of 2011. The homes fetched, on average, twice what Fannie and Freddie received for the homes.

    While resales by investors may help stabilize housing prices, critics say the U.S. taxpayers who bailed out Fannie and Freddie are the ones being shortchanged when these homes are listed for less than what they might fetch.

    “It’s another indicator the selling price is not representative of the market,” said Philip Mastin, director of assessments and equalization for Wayne County, who said Fannie and Freddie homes are being resold at nearly double the original price in his county.

    Listings of Fannie and Freddie homes show that the mortgage giants were prepared to sell some houses for less than what comparable properties in the same neighborhood fetched, records show.

    For example, Fannie listed a four-bedroom home in Troy, Mich., at $141,000 in March, even though four similar or smaller homes nearby sold for roughly $160,000. The Fannie home was on the market for three days before it had a buyer for $170,000 – nearly $30,000 above its list price.

    Freddie Mac was willing to take $153,900 for a property in South Lyon, Mich., last spring, even though there was a nearly identically sized home in that subdivision listed at the same time for $193,000 and a smaller house for $164,900. Freddie got $155,000 for its property; the other sellers got $179,000 and $165,500.

    German, the Freddie spokesman, said the mortgage giant’s properties sell in an average of 110 days nationally. But in metro Detroit, Freddie’s own numbers show that its properties are selling far more quickly – in roughly 50 days. Property experts say that indicates the homes are listed too low.

    Of the 72 homes that Freddie contracted for sale in Oakland County in April, 58 were on the market for less than a month before buyers signed contracts, according to data compiled by Braun.

    One of the Freddie foreclosures, in Springfield Township, Mich., was offered in the Multiple Listing Service at 9:19 a.m. on April 11 for $38,900 – even though its market value was $123,000. Within 24 hours, someone had a contract to buy it for $42,500.

    Judeh, the Dearborn appraiser, said homes typically need three to six months of marketing. “And if you don’t market them properly, it becomes dumping, not selling, and there’s a huge difference,” Judeh said.

    Through May, home prices in metro Detroit have fallen 38 percent since 2000, according to the S&P/Case-Shiller home price index. As Fannie and Freddie contribute to the downward spiral in property values, tax revenues fall, too.

    In Eastpointe, property values have dropped 54 percent since 2008, and Linda Weishaupt, assessor and deputy city clerk, blames foreclosures for much of that decline.

    Since 2009, property values have dropped 21 percent in Rochester Hills, Mich., and the city expects another 10 percent reduction over the next two years, said Keith Sawdon, city finance director.

    Erik Ambrozaitis, a Rochester Hills Realtor and mayoral candidate, said the decline in revenues is “the crisis. The roads in front of my house are starting to crumble. As a Realtor, I’m deeply concerned. As a homeowner, I’m really concerned. As a former council member, it is a disaster.”

    Mastin, the Wayne County official, said even if home prices recover, communities won’t recoup lost revenues quickly.

    “We will never be able to recover what’s been lost,” Mastin said. “What’s been taken away has been taken away.”

    © 2011 Detroit Free Press. Distributed by McClatchy-Tribune Information Services.

    • lvent says:

      Buyer Beware!!!! as the newspaper ads for these imply, seek the advice of an attorney before purchasing fraudclosures because these purchases could be toxic waste dumps and you could very well lose your ass…!!!!!!!

  7. here i sit trying to hang on to what i have left, only to discover 75% off, i have one property if i sold it, after paying realtor would walk away with 0 and 180,000 loss whoppie do, is a breakeven? credit sucks, they report you daily even if it takes them forever to finaly tell you no, well they get their homes taken care, those that love their homes will not destroy, however it might be more cost effective to live in the park, this has been a total scam, they had no intention of helping, and forcing homeowners to sit here waiting? what a lie, would not have destroyed credit as badly or be as far behind had you just moved out and rented the home out.

  8. SoSo says:

    Attorneys rating on their friends? I think not. Attorneys tend to cover their own butts. Offer immunity to SOME of the lawyers if the TELL ALL.

    • lvent says:

      The attorneys fear if they help homeowners they will be ratting on their attorney friends for turning a blind eye to all of the fraud that want on at and immediately following the closing…There was alot of fraudulent altering of docs that occured and I have the proof and I also know for a fact the real estate attorney I hired to protect my property rights had to see the fraud that occurred….Why else would he have suggested I put my warranty deed into a deed of trust for protection…??? They knew.

      • lvent says:

        The above comment is for SoSo.

      • SoSo says:

        I wonder if the ‘investors’ buying up a;; the real estate at fire sale prices are fronts for those who set the fire? FOREIGN INVESTORS? With their highly valuable currency versus the USD? Heck, they are buying property at 1/2 market value for pennies on that dollar as well. Talk about a well designed ponzi scheme. These guys are double dipping on this fraud!

  9. lvent says:

    CNBC reporting earthquake hits NY and Washington D.C. No threat of tsunami…What the?

    • lvent says:

      CNBC reporting quake felt as far as Detroit…Martha’s vineyard where Obama is vacationing felt it..WHOA!! No sooner did Diana Olick finally spit out a few words of truth this happens. Hmmmm..

    • Fury says:

      we felt the quake in NYC. it wasn’t that bad for us.
      they say that if a tsunami ever hits NYC it would come from a quake in the canary islands.

      another jolt of a different sort:
      a real estate broker said that the only apartments selling in manhattan are the ones at the newer Trump
      Towers that overlook the hudson river. they are the only apartments
      that don’t havet title problems.

      • lvent says:

        Fury, glad to hear you guys are o.k!!…CNBC reported that the nuke plants reported some strange activity around the time of the quake….Hmmmm……..I will bet you tube already has some HAARP video about strange activity in the skies around the time of the quake…RT news reported Russia knew there was going to be an earthquake in Japan ahead of time because of some strange activity in the sky..Russia even reported they had the hottest summer on record last summer and would be this year putting out warnings about impending heat waves..you just can’t make this stuff up.. It just gets stranger and stranger….some would even say a bit Orwellian…Dr. Evil is awful busy these days trying to save the evil empire!!!..

      • lvent says:

        Trumps properties probably don’t go into foreclosure..the weathy who buy these probably pay cash or would not even be feeling the credit crunch like the rest of us..The wealth are well cusioned.

      • Fury says:

        i think the broker was talking about the newest building in the Trump Place development
        along the hudson river. the reason why that building is selling is because it is new and therefore doesn’t have the title problems seen everywhere else.

        trump puts all his money in the lobby. the apartments themselves are tiny!

      • lvent says:

        I see what you mean Fury, I’m not from NY so I did not know this was a new development..Trump is no dummy that is for sure.. The probable reason why the banks want to bulldoze the stolen fraudcloses homes is they want to get rid of the crime scenes and start a whole new crime scene!!!

  10. David Robert says:

    what type of consciousness would you expect from a Bank [DEUTSCHE] who was the main financer of the Holocaust? These scumbags need to be sent back to Germany in body bags. We are getting closer to using that portion of the Constitution that gives us the right to use whatever means the people deem necessary to stop the terrorism and destruction of our Nation and the harm against the American people.

    • lvent says:

      Right on David!! And BOFA is really Bank of Italy. Deceptive bastards, all of them! When you look a little deper and find out who the owners really are you will find there are really only 4 and they are tyrants. It is what George Carllin calls the “big club” and we ain’t in it. I think they are all really gonna get it now because the sheeple are finally waking up!!.

    • To Tell The Truth says:

      Right on …am glad someone else is aware of how the Holocaust was financed…and check into the railroad bank of 1919 or about so or even as far back as the 1800’s…re the history of Deutsch Bank and what name it operated under then…

      Also check out GMAC and ALLY and Deutsch Bank…who owns who and how come the president gave such large stinulus funds to GMAC that is supposedly an American owned entity…the car dealership… and when did GMAC get into the residential loan etc lending apart from loans for vehicles?

      Perhaps it is time for a class action citizens arrest and lawsuit…is there such a possibility?

      Did you ever wonder why AIG was bailed out first? IF they were allowed to topple then the banks would have automatically folly suit and the homeowners would still be in their own homes…hos come such an insurance was never taken out for the homeowners that they knew would eventually default? Cause they wanted us to loose our assets and become peasants…

    • Bobbi Swann says:

      Hey All – check out a new movie hitting the theatres soon – The Debt…..it is centered on the team that was set to find all the Nazi war crimminals….and supposedly still alive and kicking. I wonder if they will mention Deutche Bank as the backer of those war crimminals!

  11. Mad as Hell in Maryland says:

    Of course Deutsche Bank knew the quality of the underlying files PRIOR to obtaining the firm. EVERYBODY knew they were bad, just not HOW bad.
    Let them take their lumps just like the rest of America has had to take them. Justice should prevail.

    Fight the good fight, question everything. Good luck to all.

  12. lvent says:

    Sure they knew!!! They were just trying to cover their UNSECURED ASSets…!!!!!

  13. SoSo says:

    Did Deuche Bank own nBank of Commerce Georgia?

    • SoSo says:

      Was Deutche Bank the ‘repository’ for the fraudulent multiple pledged loans funds transferred? It appears, that those who wrote the loans knew that the insurance would cover the fraud. It appears this was a huge international; criminal syndicate, within the banks and within the government that defrauded the banks. Study nBank of Commerce Georgia. It was shut down in 2008. It was a privately held bank. Held by Deutch Bank, I recall.
      I believe it is a prototype for the loan fraud racket. Investigate EVERYONE who has had a loan with nBank over the past 17 or so years. BINGO.

      • SoSo says:

        Oh yes, make sure to cross reference those loans with a list of bank employees, loan originators, loan officers, govt employees, especially those involved in ANY aspect of real estate/mortgages (maybe: LOAN GUARANTEE OFFICERS?), even as a consultant or otherwise payed to do govt work (LAWYERS, APPRAISERS, REAL ESTATE BROKERS AND AGENTS, ETC) BINGO! AGAIN!

      • SoSo says:

        Its most important to investigate the LAWYERS who these thugs use to protect them over the years They MIGHT be more then lawyers providing a criminal defense to an indicted client, they might be CO-RACKETEERS. protecting themselves and providing a PRO ACTIVE PROTECTION RACKET!
        RICO!!!

      • lvent says:

        SoSo, there are alot of unclean hands..The real estate attorneys turned a blind eye to alot of stuff at the closings. That is why there are so many attorneys who don’t want to get involved because they may be ratting on their friends..If you can find an attorney who actually despises these banksters and wants to cost them alot of money to take your stuff…. then you know that you found a good one.

      • lvent says:

        Nye Lavalle calls it the “shadow banking system.” They cyber robbed us and the cover up for all of this started on 9/11..

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