The Justice Department said today that the mortgages were insured by the Federal Housing Authority. It says MetLife knew many of the loans didn't meet federal requirements but it rarely informed the FHA about the problem. According to the agency, during some periods in 2009 and 2010 MetLife Bank knew that a majority of the loans it was originating had material or significant deficiencies.
It says the FHA and taxpayers were stuck with the bill when defaults followed.
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