Deutsche Bank, MortgageIT Ask Court to Toss $1 Billion Lawsuit
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Deutsche Bank AG, Germany’s biggest bank, and its MortgageIT unit are seeking dismissal of a $1 billion suit by the U.S. government claiming they lied to qualify thousands of risky mortgages for a government insurance program.
The U.S. claims Deutsche Bank and MortgageIT falsely certified that they properly assessed the default risk of borrowers, qualifying loans for insurance by the Housing and Urban Development Department’s Federal Housing Administration, according to a complaint filed May 3 in Manhattan federal court.