Quicken denied those charges and vowed to fight them. The DOJ then retaliated, formerly accusing Quicken of False Claims violations, alleging that Quicken instituted an underwriting process that encouraged employees to disregard FHA rules and falsely certify compliance with underwriting requirements in order to reap the profits from FHA-insured mortgages. ![]() It all began back in 2015 when Quicken sued the DOJ and HUD for allegedly demanding the nonbank make public admissions that were blatantly false, and requiring it to pay an inexplicable penalty or face legal action over a pool of FHA loans that were brought into question. The agreement puts the mortgage lender’s highly contentious dispute with the Department of Housing and Urban Development and the DOJ to rest, settling a case that was widely discussed in the mortgage industry for shedding a bright spotlight on the Obama administration’s practice of pursuing FHA lenders under the False Claims Act for allegedly originating mortgages that were not up to FHA standards. Without any admission of guilt or determination of wrongdoing on either side, Quicken has agreed to pay the government $32.5 million to resolve claims that it violated the False Claims Act by “knowingly” submitting hundreds of “improperly underwritten” loans for FHA mortgage insurance.Īccording to the mediator, $25.5 million of that sum will go to the government “for any losses it may have incurred,” while the remaining $7 million will be paid in interest. Quicken Loans is now finally able to move past its beef with the Department of Justice over the nonbank’s FHA lending practices, as a mediator for the two parties announced Friday that they had finally reached a resolution.
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