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How Long Is The Time Until Your Debit Bank Mortgage Lawsuit Reveals?

The Department of Justice, including both federal agencies and state partners, today announced a $7.2 million settlement with Deutsche Bank resolved in connection with its federal criminal actions for misleading its investors in the packaging, issuance, and sale of mortgage-backed securities (MBS) between 2001 and 2006. In addition, the Department is imposing penalties on three senior management members – a former president of the bank, a vice president of the bank, and an individual currently serving as a bank director – for their roles in the deception. The resolution of the case will leave the senior management of the bank free to resume their various duties. The case involves violations of the Truth in Lending Act (TILA), the Gramm Act, the Real Estate Settlement Procedures Act (RESPA), and the Treasury Department’s Office of Thrift Supervision. The resolution of the bank’s fraud charges is the latest example of the Department of Justice pursuing Wall Street frauds of all types.

The investigation revealed that a former CEO of the bank, James A. Goldman, and a current executive, Robert Kiyosaki, devised a plan to defraud investors through a so-called “trading piggy bank” scheme.

To enrich themselves at the expense of their investors, both executives used their influence to get kickbacks from investors where the bank paid them in stock options in return for purchasing mortgage fraud structured products from investors. During this scheme, the bank paid tens of millions of dollars in interest and fees to two brokers who are affiliated with the bank. As a result of the bank’s deception, many mortgage holders were deeply underwater in their mortgages and defaulted on the home loans that they held.

The massive settlement includes a major loss to the lender as well. Several billion dollars in potential losses have been redirected to the bank through the discount rates earned through fraudulent transactions with their affiliates.

The bank also owed millions of dollars in fees and fines to the government as part of the civil settlement. Although details of the case and details of the settlement itself are not public records, you can find out more by consulting a foreclosure attorney in your area. They can explain to you why the bank has settled, what you need to know, and how to navigate the settlement process and its potential pitfalls.

There is one other important piece of information that you need to be aware of if you plan to pursue such a lawsuit. You need to know that this is not an isolated incident. This is a symptom of a problem that began nearly three years ago. Back in August 2008, the entire banking industry was reeling from the real estate collapse. While no one could have predicted the financial calamity that would occur just over four days later, the truth is that the crisis had the biggest impact on the mortgage market and the home owner’s ability to make payments on their home loans.

Between August 2008 and today, the housing market has fallen by more than 25 percent in overall value.

This drop was far more than the actual decline in home values that occurred during the mortgage fraud lawsuit. In addition, the decline was even worse when comparing prices against the average of previous home sales over the same time frame. In other words, prices dropped so far that many buyers were not able to purchase new homes even after waiting so long. It takes a very long time to recover from a home buyer’s affordability gap, so the decline in prices was likely far greater than the decrease in value of the homes themselves.

If you are acting on your behalf, there is still hope for you. If you choose to go forward with your Deutsche Bank lawsuit, do so as quickly as possible. You will only have up to two years to bring your case to trial, after which both parties must present their cases to a jury trial. If you wait until after the two years are up, you will be unable to litigate your case at all. Therefore, if you want to receive full compensation for your loss, you need to act fast.

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