Did Dan Gilbert And Quicken Loans Contribute To Detroit's Blight?
Survey of Detroit Mortgages Show Quicken Loans Contributed To Detroit's Blight
It appears Quicken Loans owner and wannabe White Jesus of Detroit contributed to Detroit's epic blight problem. Gilbert is not totally responsible for the blight. Bank of America, Wells Fargo, and others also share a greater responsibility. Yet Gilbert did contribute to the blight that he and Quicken Loans have now pledged to eliminate.
First of all, let's go back in time to 2007. Dan Gilbert, proclaimed to Tom Walsh at the Detroit News, “Quicken and Rock have never made subprime loans to home buyers"
Investigative journalist Michael Hudson debunked this claim by Gilbert.
An Ohio court awarded a $3 million verdict to former Quicken Loans customers. The homeowners were victims of predatory lending in 2011. A West Virginia judge also awarded the homeowners $2 million. The court ruled Quicken used fraudulent appraisals in order lend homeowners more money. The judge in the case even went so far to call Quicken's actions, “unconscionable.”
Dan Gilbert still proclaimed, "Quicken to be “one of the good guys.”
Quicken Loans was able to escape the carnage of the financial crisis. That part is true but it wasn't because Quicken was one of the good guys. It was because Quicken didn’t carry any liability from the loans they originated. Gilbert's company sold the loans on the secondary mortgage market within weeks of originating them.
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