Feds Sue Quicken Loans
The federal government is suing lending company Quicken Loans for allegedly issuing improper mortgages.
The federal government is suing lending company Quicken Loans for allegedly issuing improper mortgages.
The Justice Department accuses Quicken Loans of knowingly allowing hundreds of mortgage loans underwritten by the Federal Housing Administration to go through even though they allegedly did not comply with federal rules.
The government claims the nation’s second-largest direct-to-consumer mortgage lender encouraged employees to falsely certify that loans were in compliance with federal requirements in order to gain profits from FHA-insured mortgages.
Quicken Loans officials counter that the charges are blatantly false and that the company set the “gold standard” for processing FHA loans.
Last week the company took the rare step of suing the government to produce a finding that the mortgage lender had acted properly – claiming the Justice Department was trying to squeeze Quicken Loans into paying a large settlement and falsely admitting it had violated federal regulations.
