MortgageIT

MortgageIT is a U.S. company that specializes in commercial mortgages. It was incorporated in January 2007, shortly before the outbreak of the financial crisis for $ 430 million from Deutsche Bank.

Operations

MortgageIT, Inc., founded in 1988, is a U.S. mortgage bank headquartered in New York City. The company is a wholly owned subsidiary of MortgageIT Holdings, Inc, a self-managed real estate company (REIT ). The company has the license for the award of mortgage loans in all 50 states and operates with 2,100 employees in 47 states.

Method

On 4 May 2011, the Prosecutor's Office opened in New York a civil action against MortgagelT and the German bank. The suit alleges a frivolous granting of mortgages without verifying the required creditworthiness. So the company should have awarded approximately 39,000 real estate mortgages between 1999 and 2009, of which 12,500 borrowers now geworden.sind insolvent. The mortgages were insured by the Federal Housing Administration (FHA ) and then resold in the bundle as certificates. The government-backed mortgage insurance from these transactions as specified in the action in more than 3,100 cases so far more than $ 386 million incurred damage due to credit losses.