According to a Reuters report, MortgageIT's settlement includes an admission that it falsely claimed that loans it certified to the U.S. Department of Housing and Urban Development were eligible for federal mortgage insurance. The settlement will resolve damages and penalties incurred by MortgageIT in violation of the False Claims Act.
The DOJ originally sued MortgageIT for $1 billion. The $202.3 million settlement was approved yesterday by a federal judge in New York.
A Deutsche Bank spokesperson commented that the settlement ‘marks a significant step in resolving our mortgage-related exposures.’