Quicken Loans Throws In The Towel And Agrees To Pay Fine To Feds
Quicken Loans Throws In The Towel And Agrees To Settle DOJ’s False Claims Act Lawsuit For $32.5 Million
Quicken Loans and Dan Gilbert did something Gilbert claimed they would never do. They caved to the government. They agreed t0 settle with the government over Quicken Loans FHA lending practices.
Quicken has agreed to pay the government $32.5 million to resolve claims that it violated the False Claims Act. The agreement also puts the highly contentious dispute with HUD and the DOJ to rest.
The DOJ alleged that Quicken instituted an underwriting process that encouraged employees to disregard FHA rules. The DOJ also alleged that the lender falsely certified underwriting requirements to reap the profits from FHA-insured mortgages.
DOJ filed a lawsuit against Quickens alleging that Quicken Loans bullied appraisers to receive higher values for applicants and that underwriting managers encouraged underwriters to “fudge” the incomes of hundreds of applicants.
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