Soapbox: “A thing that provides an opportunity for someone to air their views publicly.”
I read an article earlier today that made me gasp (which in the new vernacular means that it was compelling enough for me to hit the “share” button and comment). The US Government has filed a lawsuit against Deutsche Bank. That’s the good news. The bad news is that it involves $1.274 BILLION that HUD – that’s us – has paid, or in the process of paying, this ONE bank, for bad loan insurance claims.
The heartbreaker is that this is really about bailing out a bank, not for mortgages that it originated (which would legitimize the HUD compensation), but for a bad investment decision Deutsche Bank made in 2007 when it bought a subprime/Alt-A lender, MortgageIT.
How did a lender who “specializes” in subprime/Alt-A mortgages EVER get approved to originate HUD insured loans? From my brief internet foray into researching MortgageIT, it doesn’t look like they did. They simply bought HUD backed loans from “small to mid-sized banks, credit unions and mortgage bankers” to enhance the marketability of their own portfolio. The one that Deutsche Bank bought off on.
That being said, I know that Deutsche Bank is not stupid. I know that Deutsche Bank did their due diligence. I know that Deutsche Bank got burned. Wait, did they?
Executive Summary? Deutsche Bank Net Profits Up 17%
Shame on us …
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Kim Novak is a Realtor® and Broker Associate with RE/MAX Masters in Salt Lake City and Layton, Utah. Licensed in 1995, Kim has closed over 500 sales during her full time real estate career and achieved industry recognition as a Lifetime SalesMaster and member of the RE/MAX Hall of Fame. She holds a BSBA with an emphasis in Sales & Marketing and has achieved the following designations/certifications:
ABR: Accredited Buyer Representative, AHWD: At Home with Diversity, CDPE: Certified Distressed Property Expert, CHS: Certified HAFA Specialist, CRS: Certified Residential Specialist, CSP: Certified New Home Sales Professional, ePRO: Internet Professional, GRI: Graduate of the Realtor® Institute, SFR: Short Sale & Foreclosure Resource, SRES: Seniors Real Estate Specialist