FHA Case Against DB Sends a Chill Through the Industry

``The FHA generally cites some origination defect before refusing to pay claims or seek indemnification for future losses. But in this case, the U.S. attorney is stating that Deutsche Bank is responsible for all defaults because of MortgageIT's "failure" to implement a quality control program... Some are concerned the subpoenas could prompt lenders to tighten already tight lending standards.'' -- Sorry but we shed few tears; its about time a third party held lenders responsible for what FHA itself has failed to enforce.