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Wednesday, April 29, 2015

Justice Department Sues Quicken Loans Over Mortgages

Quicken Loans, the nation's third-biggest mortgage lender, is being sued by the U.S. Department of Justice under the False Claims Act for allegedly making hundreds of improper loans through the Federal Housing Administration and costing the agency millions of dollars. According to the DOJ, Quicken knowingly submitted or caused the submission of claims on hundreds of bad loans from September 2007 to December 2011. It also is accused of encouraging employees to disregard the FHA program's rules and falsely certify that loans met the agency's requirements. Among other things, the lawsuit claims that when a home value came in too low, Quicken would request a specific, inflated value from the appraiser without giving a reason despite such practices being banned under the program. Quicken has responded to the investigation by filing complaints against the DOJ and the U.S. Department of Housing and Urban Development, insisting that it was being pressured to make admissions that were "blatantly false" and required to pay a penalty or face legal action. DOJ has already settled similar cases with JPMorgan Chase, SunTrust Banks, U.S. Bank, and Bank of America.

From "Justice Department Sues Quicken Loans Over Mortgages"
New York Times (04/24/15) P. B1 Bernard, Tara Siegel

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