Despite Setbacks, Quicken Loans Will Continue to Fight Government Suit

Mortgage Professional America|  February 17, 2016     Despite reversals in court, lending giant Quicken Loans says it’s not giving up its fight against the federal government, which has accused the company of knowingly approving shoddy loans to make a quick buck.

The Department of Justice is suing Quicken Loans, accusing the company of committing fraud to push through lousy loans during the financial crisis, according to a report by the Cleveland Plain Dealer. Those loans were backed by the Federal Housing Administration, and left taxpayers to foot the bill when they defaulted.

Quicken Loans is just one of many large lenders the government is suing for fraud. Unlike many of those lenders, however, Quicken is pushing back. In April, the company sued the DOJ and the Department of Housing and Urban Development, claiming the government had used a flawed sample of loans to build its case. That lawsuit, which also demanded a jury trial in Michigan – where Quicken Loans is based – was thrown out in December.  Read more here.

Foreclosure Abuses, Revisited

The New York Times |  October 6, 2015   The promise of widespread relief for homeowners facing foreclosure in the wake of the housing bust has never been realized. The government did not require the banks to rework bad loans, which in many cases the banks offloaded on the federal agencies that insured them. Now these same agencies are selling some of these loans at a discount to hedge funds and private equity firms. Has this merry-go-round helped homeowners? No. The myth of mortgage relief lives on.  Read more here.