A federal judge has struck down mortgage lender Quicken Loans’ lawsuit against the U.S. Department of Justice (DOJ), but the company vows to continue fighting the claims that it mishandled government-backed mortgages.The Detroit-based lender filed suit against the DOJ on April 17, 2015, alleging that the federal government was trying to “strong-arm” it into agreeing to a hefty settlement over its handling of Federal Housing Administration (FHA) backed mortgages. 3-year investigation CEO of Quicken Loans Bill EmersonThe DOJ had been investigating Quicken for nearly three years as part of an ongoing probe of other top mortgage lenders for allegedly originating defective loans in the run-up to the financial crisis.According to the DOJ, from 2007 to 2011 Quicken knowingly submitted claims for hundreds of improperly underwritten FHA-insured loans, encouraged employees to disregard FHA rules and requested inflated property appraisals.But in its complaint, Quicken a...
- According to the DOJ, from 2007 to 2011 Quicken Loans knowingly submitted claims for hundreds of improperly underwritten FHA-insured loans.
- Quicken asserted that the DOJ used statistical sampling to draw its conclusions, and therefore violated the Administrative Procedures Act.
- On Dec. 31, the DOJ's motion to dismiss the Quicken lawsuit was granted by the U.S. District Court.