Tag Archives: Quicken Loans

Quicken Loans begins long journey with DOJ over FHA violation charges

Monday marked the first of what will likely be many hearings between Quicken Loansand the Department of Justice before U.S. District Judge Mark A. Goldsmith over FHA lending violation charges.

The two parties are first meeting for a hearing on Quicken Loans’ request to have the case dismissed, but if denied, the trial will begin in April 11, 2019.

Read on.

Private lenders lobbied heavily for suspension of the reduction of Mortgage Insurance Premiums. Trump’s HUD adviser? Shawn Krause, Quicken Loan lobbyist

NY Times:

In the years since the crisis, many of the nation’s largest banks pulled back their mortgage-lending activities. Quicken Loans pushed in. Today, it is the second-largest retail mortgage lender, originating $96 billion in mortgages last year — an eightfold increase from 2008.

Privately held Quicken, like some of America’s largest banks before it, has also landed in regulators’ cross hairs. In a federal false-claims lawsuit filed in 2015, the Department of Justice charged that, among other things, the company misrepresented borrowers’ income or credit scores, or inflated appraisals, in order to qualify for Federal Housing Administration insurance. As a result, when those loans soured, the government says that taxpayers — not Quicken loans — suffered millions of dollars in losses.

Quicken Loans today is the F.H.A. insurance program’s largest participant.

Executives at Quicken Loans deny the charges, maintaining, among other things, that the government “cherry-picked” a small number of examples to build its case. In an aggressive move, the company pre-emptively sued the Department of Justice, demanding a blanket ruling that all of the loans it had originated met requirements and “pose no undue risks to the F.H.A. insurance fund.”

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Late last year, Donald J. Trump named a former Quicken Loans lobbyist, Shawn Krause, to his H.U.D. transition team. A Trump spokeswoman did not respond to an email asking about potential conflicts of interest. In an emailed statement, Quicken Loans said the fact that Ms. Krause had come from the largest F.H.A. lender in the country “bodes well for the positive impact she has, and will, make on H.U.D.”

In the years since the financial crisis, Quicken has emerged as a leader in the nation’s shadow-banking system, a network of nonbank financial institutions that has gained significant ground against its more heavily regulated bank counterparts in providing home loans to Americans. Increased regulation and decreased profits sent the nation’s banks packing.

Nonbanks, like Quicken, have filled that gap. Today, Quicken is the nation’s second-largest retail residential mortgage lender, behind Wells Fargo, but ahead of banking giants like J. P. Morgan, Bank of America and Citigroup, according to Mortgage Daily.

What???Quicken Loans now offering 1% down mortgages

Here are the details on the program that no one is talking about

While megabanks like Bank of America, Wells Fargo, and JPMorgan Chasegrabbed the headlines earlier this year by separately announcing plans to offer mortgages that only require a 3% down payment from the borrower, there is another major lender that is quietly requiring even less from borrowers.

Unbeknownst to many in the market, Quicken Loans began offering an even better deal for borrowers late last year – a 1% down mortgage.

But, here, the company opens up for the first time about the product.

First, Quicken’s 1% down mortgage program isn’t for everyone, as there are several stipulations and requirements, but a 1% down payment is still a 1% down payment.

It’s still 66% lower than what Bank of America, Wells Fargo, JPMorgan Chase, and many other major lenders are offering.

Read on.

Quicken Loans preps to face U.S. over FHA loan violations

Quicken Loans is revving up to face the Department of Justice after a federal judge tossed Quicken’s lawsuit against the DOJ and the Department of Housing and Urban Development in January.

In a recent interview with Quicken Loans CEO Bill Emerson, Teresa Dixon Murraywrote in an article on Cleveland.com that the lender plans to step up efforts to fight the government now that its lawsuit against the government was dismissed.

Read on.

Super Bowl ‘rocket’ mortgage ad brings jeers — and loan may not be so quick

And I certainly was not paying attention to the Super Bowl commericals last night. I didn’t know that Quicken Loans had a mortgage ad. And the ad certainly sounds like a subprime loan pitch.

“You could get a mortgage on your phone,” according to the Super Bowl ad.

It was a promotion for Quicken Loans’ Rocket Mortgage, so named because it tries to connect applicants with mortgages in just eight minutes. That’s all the time that’s needed to get a mortgage – not just a pre-approval, Quicken claims.

And when consumers get mortgages, it’s a shot in the arm for the entire economy, the commercial tells us.
For many viewers, that hit a little too close to home to the business model that cratered the financial system in 2008.

Read on.

Quicken Loans’ lawsuit against DOJ, HUD tossed out by federal judge

A federal judge tossed out Quicken Loans’ lawsuit against the U.S. Department of Justice and the Department of Housing and Urban Development that alleged the lender was being forced to make public admissions that were blatantly false, as well as pay a penalty or face legal action.

According to an article from Reuters, Judge Mark Goldsmith granted the DOJ’s motion to dismiss Quicken’s initial complaint.

Quicken Loans, which is the nation’s largest Federal Housing Administration-backed mortgage lender, said it now intends to explore its options in its claims against the government while fighting to defeat the government’s retaliatory lawsuit alleging that Quicken Loans violated the ‘False Claims Act.’

“This temporary procedural setback does not deter Quicken Loans from exposing the truth about the DOJ’s egregious attempts to coerce unjust ‘settlements’ from its victims including Quicken Loans by using the guise of the heavy hand and power of the federal government in doing so,” said Bill Emerson, Quicken Loans CEO.Read on.

 

Quicken Loans considers quitting FHA loans

The contentious legal battle between Quicken Loans and the Department of Justice over the DOJ’s allegations that Quicken violated the False Claims Act by “knowingly” submitting hundreds of “improperly underwritten” loans insured by the Federal Housing Administration may just be enough to drive Quicken Loans out of FHA lending completely.

According to a report from Reuters, Quicken Loans, which is currently the largest FHA lender, is considering ending its participation in FHA lending entirely, citing the government’s aggressive enforcement policies as the main reason for potentially dropping FHA lending.

Read on.