of Housing and Urban Development paid out millions in insurance claims to Quicken over loans that should not have been approved. “Example, purchase loan we pulled new credit and the client stopped paying on almost everything and the scores fell by 100 points, we closed it.”Īs a result of this allegedly deceptive underwriting, the Dept. “e make some really dumb decisions when it comes to client service exceptions,” reads the e-mail. “I don’t think the media and any other mortgage company… would like the fact we have a team who is responsible to push back on appraisers questioning their appraised values,” wrote a Quicken VP for Underwriting in an e-mail cited in the complaint.Ī second e-mail claims that 40% management exceptions on FHA-insured loans should not have been approved. The DOJ contends that these practices were not relegated to a few rogue managers but were something that top company executives were aware of. The company allegedly granted “management exceptions,” in which managers allowed underwriters to break FHA rules to get a loan approved. The complaint accuses Quicken of violating FHA rules by falsely inflating appraised values of homes to make sure a loan was approved. Company employees allegedly ignored the underwriting rules and requirements for these loans, in an effort to push through as many mortgages as possible while knowing they could make an insurance claim to FHA if the loan went south.
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2011, Quicken knowingly submitted claims for hundreds of improperly underwritten FHA-insured loans. District Court in Washington, D.C., alleges violations of the False Claims Act, which allows the government to seek treble damages and penalties from companies that knowingly defraud the administration.Īccording to the DOJ, between Sept.
![quicken loan quicken loan](https://www.housingwire.com/wp-content/uploads/2019/09/QuickenLoans2-1.png)
of Justice is suing Quicken Loans, alleging that the lender improperly underwrote hundreds of FHA-insured home loans before and during the housing market crash, resulting in substantial losses for the federal government. If you thought that we were done with lawsuits related to the mortgage meltdown, think again.
![quicken loan quicken loan](https://www.quicken.com/sites/default/files/image-2019-10-22-15-45-09-214.png)
4.23.15 5:59 PM EDT By Chris Morran is mortgage quicken loans lawsuits mortgage meltdown doj FHA hud