Quicken Loans is being sued by the government for allegedly approving shoddy mortgages – but the company says it will continue to fight the allegations
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.
But the company plans to renew its demand that the case be tried in Michigan, according to the Plain Dealer. And it has no intention of rolling over for the government.
“This case is absurd,” Quicken Loans CEO Bill Emerson told the Plain Dealer. “We’re going to continue to fight it.”
Emerson also pointed out that Quicken Loans, the nation’s largest FHA lender, also has the lowest default rate.
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.
But the company plans to renew its demand that the case be tried in Michigan, according to the Plain Dealer. And it has no intention of rolling over for the government.
“This case is absurd,” Quicken Loans CEO Bill Emerson told the Plain Dealer. “We’re going to continue to fight it.”
Emerson also pointed out that Quicken Loans, the nation’s largest FHA lender, also has the lowest default rate.
