8/17/2023 0 Comments Quicken loans log inThe suit alleged that the borrower became delinquent after one payment and that the government paid a $487,010.33 insurance claim as a result. In one example what the FHA said was inappropriate lending, the government’s suit described a situation in which Quicken allegedly certified a borrower based on income documentation that was nearly two years old. Photographer: David Paul Morris/Bloomberg via Getty Images David Paul Morris/Bloomberg via Getty Images PulteGroup Chief Executive Officer Ryan Marshall said that the housing recovery will continue because the economy is strong and the inventory of available homes remains tight. Metro housing development in Milpitas, California, U.S., on Thursday, Oct. The government filed its suit against the company days later.Ī contractor uses a hammer while working on townhouse under construction at the PulteGroup Inc. In April 2015, Quicken Loans sued the Justice Department and federal housing officials over the investigation into its lending. The Justice Department began investigating the company’s lending practices in 2012. The government has alleged that Quicken Loans broke federal rules by approving loans to unqualified borrowers from 2007 to 2011. Instead, the government claimed, the company used inaccurate income statements and other tactics to approve unqualified borrowers. As a lending partner in the program, Quicken Loans was required to certify that borrowers met certain criteria that would lower risk of default. The FHA, a government agency, insures mortgages to help banks lend to borrowers who might not be able to get loans otherwise. “Now that this dispute is behind us, we look forward to cultivating and expanding our relationship with both FHA and HUD so that we can increase Americans’ access to home financing and home ownership.” “We have always been proud of our growing participation in the FHA program,” Quicken Loans CEO Jay Farner said in the statement. Of the settlement funds, $25.5 million will go to recouping government losses, with another $7 million designated as interest on that amount, according to a statement Friday from a mediator who worked on the case, Judge Gerald Rosen. Quicken Loans did not admit any wrongdoing as part of the settlement. When the borrowers defaulted, the company profited off the loans - and cost the government millions, the complaint said. The government alleged in a 2015 lawsuit that Quicken Loans knowingly approved hundreds of loans insured by the FHA to unqualified borrowers. The agreement resolved a years-long dispute over the company’s participation in a Federal Housing Administration lending program. The Justice Department on Friday dismissed a lawsuit against Quicken Loans, after the company agreed to a $32.5 million settlement with the United States government.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |