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Deutsche Bank to Pay $202 Million Over Mortgage Fraud

Deutsche Bank AG agreed to pay $202.3 million to settle civil claims that its MortgageIT unit lied to qualify thousands of risky mortgages for a federal insurance program in what the U.S. called a “massive fraud.”

The U.S. claimed in a lawsuit filed May 3, 2011, that Frankfurt-based 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.