Most buyers want to know the house they are buying is worth what they are paying.
Losing one’s equity is a real danger if appraisers are inflating home values. They could lose their down payment and equity monies too. If underwriters are inflating income figures simply to close loans, some families may find themselves unable to afford monthly mortgage payments. Where is the truth? Is the government engaged in a witch hunt or is the government really the one protecting middle class families? “Today’s DOJ filing is simply the continuation of the abusive actions and a make-good on the DOJ’s threats since their witch-hunt began three years ago.” “The real victims in this unjust claim are the millions of middle-class American families who rely on FHA financing to reach their goal of affordable home ownership,” Quicken said in a prepared release. Quicken and Gilbert probably hope to get a more sympathetic jury here.Īfter Quicken filed its lawsuit, the company issued a statement claiming they are simply trying to help middle class families buy homes. Their lawsuit hasn’t been successful but Quicken did manage to get the government’s case transferred from Washington DC to Detroit. The suit tried to shut down the government’s investigation.
We will stand in defense of our impeccable reputation established by thousands of hard-working ethical team members over our 30-year history.”Īnticipating the government’s fraud lawsuit, Quicken filed its own lawsuit against the government. Immediately after the suit was filed, Quicken CEO Bill Emerson was quoted in the Detroit News saying, “No threat, including high-profile senseless lawsuits from powerful federal officials, will deter our company and its leadership from doing the right thing. In typical Dan Gilbert fashion, Quicken didn’t buckle under and try to quietly settle the matter. Lyon wrote, “I was able to fudge her job income and get that up a bit.” In yet another email exchange concerning a different loan, Quicken’s FHA Operations Director Jeanette Ahles wrote that she had “done all I can with this income,” further stating that she “gave a little OT ,” but that it was “still not enough to qualify.” Ultimately, Quicken approved and endorsed both loans for FHA insurance.
In another email to other senior management, Mr. Lyon recognized that the income was ‘evil and horrible,’ Quicken certified the loan qualified for FHA insurance and endorsed this loan for FHA insurance, committing FHA to the risk of the borrower defaulting.” In one section of the lawsuit, prosecutors claim Quicken Loan VP of Mortgage Operations Mike Lyon approved a loan that was based on “bastard income.” The complaint says, “In an email discussing the borrower’s income used to approve an FHA insured loan, Quicken’s Operations Director, Mike Lyon, explained the loan was underwritten with ‘bastard income,’ which he defined as ‘trying to put some kind of income together that is plausible to the investor even though we know its creation comes from something evil and horrible.’ Even though Mr. The government wants Quicken to pay tens of millions in fines and penalties.Īccording to prosecutors, Quicken ignored underwriting red flags, pushed appraisers to boost appraisal numbers and ignored government mortgage guidelines. Department of Justice sued Quicken Loans under the False Claims Act, a Civil War anti-fraud statute. They say he has defrauded taxpayers of millions of dollars. The government claims his company, Quicken Loans, bullied appraisers and underwriters to fudge numbers simply to close loans. How he got the money to fund his ambitious redevelopment plan and how he operates the mortgage company he founded is a different story.
He has poured millions of dollars into the Motor City in the hopes that it can once again be a vibrant city. Dan Gilbert is a household name in Detroit. Justice Department Settles with Quicken Loans… Learn the Real Story
0 kommentar(er)
