Mortgage Company, U.S. Government in Legal Battle
Posted on behalf of Arnold Law Firm on Apr 28, 2015 in Whistleblower
A Detroit-based home loan company and the U.S. Government will soon fight each other in court.
The mortgage company, Quicken Loans Inc., filed suit against the U.S. Department of Justice (DOJ) and the Department of Housing and Urban Development (HUD), the company announced in a written statement earlier this month.
Six days later, the government filed suit against Quicken under the False Claims Act, according to a written statement from the DOJ, which alleges that Quicken used poor underwriting for FHA loans.
The Federal Housing Administration, a part of HUD, insures these loans. The purpose, according to HUD, is to make it possible for lenders to offer homeowners better loan terms such as low down-payments, low closing costs, and easy credit qualifying.
The governments complaint against Quicken alleges that the company violated FHA rules by inflating home appraisals, falsely calculating borrowers credit characteristics, and issuing FHA-insured loans to borrowers who lacked the assets to pay a mortgage.
The complaint also states that HUD lost millions of dollars as a result of Quicken approving loans that violated FHA rules.
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As a whistleblower, you may be able to bring a claim under this law. Contact the Arnold Law Firm to find out.