But that number could rise, based on the hundreds of millions of dollars in claims they expect FHA to pay out in coming years and on an additional possible penalty assessment. The government's suit says Deutsche's MortgageIT endorsed more than 39,000 mortgages for FHA insurance over a decade – many of which went bad early, in what is widely taken as a sign of likely fraud. The suit says the department of Housing and Urban Development, which runs the FHA, has paid out $386 million through February on 3,100 defaulted mortgages. Of those, more than 600 defaulted within six months, 1,100 defaulted within a year and more than 2,000 – nearly two-thirds of the total – went bad within two years. The suit says some $888 million of mortgages were in default without claims having been paid by HUD. Some $348 million of those mortgages went bad within a year and more than half went bad within two years, it said.