MortgageIT is a residential mortgage banking company that was founded in 1988 and is headquartered in New York City

New York City

New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

. By 2004, the company had become one of the top mortgage lenders in the nation. Also, in 2004, MortgageIT became a wholly owned subsidiary of MortgageIT Holdings, a self-administered REIT trading on the NYSE. As a full-service residential mortgage banking company, MortgageIT’s primary business operations are to originate, sell and broker residential mortgage loans in 50 states and the District of Columbia. Also, MortgageIT is an approved U.S. Department of Housing and Urban Development (HUD) delegated mortgagee. At the end of January 3, 2007 the company employed 2,100 and had 47 branches throughout the United States. The settlement, title and related services for mortgage loans were provided by Home Closer LLC, a subsidiary of MortgageIT.

Business segments

There are two primary operation spaces that drive the revenues for the company and they are mortgage investment and mortgage banking operations. The company’s mortgage investment operations are defined as the net interest income generated on the company’s prime mortgage loan investment portfolio. As for the mortgage banking operations, this part of the company’s income is generated from the mortgage loan origination business and include sales, loan process, underwriting, funding, secondary marketing and brokerage activities.

IPO offerings

The close of MortgageIT’s IPO on August 4, 2004 sold 14.6 million shares of common stock at $12.00 per share. The net proceeds of the IPO were approximately 163.4 million. In June 2005, MortgageIT sold 7,289,428 shares of its common stock in a secondary public offering.

Acquisition

On June 11, 2006, the company agreed to be acquired by Deutsche Bank

Deutsche Bank

Deutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...

Structured Products, for $14.75 in cash per share of the company common stock. On January 3, 2007, the acquisition was completed and expected to add to Deutsche Bank’s US residential mortgage business.

Legal Liability

Had Deutsche Bank AG done a better job in due diligence prior to the acquisition, the Frankfort-based bank might have uncovered that MortgageIT had a record of reckless underwriting and not even reading the auditor’s repeated reports on underwriting violations. That oversight resulted in the U.S. Department of Justice suing Deutsche Bank AG for on behalf of the Department of Housing and Urban Development for misrepresenting the quality of 39,000 government mortgages valued at more than $5 billion, filing false claims on about 12,500 government mortgages valued at over $1 billion, and defrauding U.S. taxpayers. These were the mortgages that came out of MortgageIT's nationwide footprint.

Executives

Chief Executive Officer and Chairman - Doug Naidus

Chief Financial Officer and President - Glenn J. Mouridy