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Lending giant CEO says company won’t settle with DOJ

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Mortgage Professional America | 10 May 2016, 06:30 AM Agree 0
The head of a lending giant accused of fraud says the allegations are without merit – and the company has no intention of settling
  • Anonymous | | 10 May 2016, 11:23 AM Agree 0
    While I see his point and agree with him, I definitely think it is super risky to be riding the DTI line to that extreme! Clearly that wasn't a DU approved mortgage file and it was a manual FHA underwrite. Those are riskier mortgages to begin with, and then to completely max the mortgage amount based on the DTI, so that $2.10 made it go out of compliance is dumb. I'm sorry but come on, guys! The LO and the UW pushed that mortgage to the very max if two bucks was all it took to kill it. Two dollars?
  • | | 10 May 2016, 11:32 AM Agree 0
    I agree. These guys are trying to corner the market with all the marketing. All of that marketing costs money so they are forced to max every deal out. They will fail just like all the others before them who attempted to run none stop commercials. Remember Ditech?? Or even before them First Plus Financial with Dan Moreno..History always repeats itself in this business.
  • John L | | 10 May 2016, 12:51 PM Agree 0
    I am in favor of breaking up big lenders. They have a monopoly on the market and that leads to widespread abuse.

  • Bruce Calabrese | | 10 May 2016, 01:00 PM Agree 0
    Don't settle with these Government criminals!! Since the beginning of time there have been degrees of law, rule and regulation violations. Somewhere in recent time the Obama Administration removed those degrees and now believe you can get the death penalty for Jay walking. That is not the case and Quicken needs to stay the course. Do not give up. The courts will find in your favor and the Obama Administration will waste billions of our money pursuing absolutely nothing. Victimless minor misdemeanors.
  • KB919 | | 10 May 2016, 01:13 PM Agree 0
    I am sure Emerson picked an extreme example to illustrate his point. The regulators are out of control. I'm glad someone is fighting back
  • Ben | | 10 May 2016, 01:43 PM Agree 0
    Good for Quicken. Someone needs to stand up against the Bullies. The government is overreaching just to media attention and a few quick bucks. They have no interest in simplifying the process that would prevent these small discrepancies or allow for meaningful currying of a mistake.
  • M | | 10 May 2016, 02:07 PM Agree 0
    It states that they miscalculated the income by $2.10 not that the ratios were out by $2.10. I'm a small one man shop, I agree with you on the ad machine giants. However, I think you are missing the point here. I hope they fight back and win against the unbridled reaching arm of "guilty until they spend enough to go out of business".
  • | | 10 May 2016, 02:36 PM Agree 0
    Quicken is in big trouble , there are many issues that DOJ is not aware of Yet , once the evidence is presented could cause more fine and may be suspension of the lending license too.
  • DOJ Watch | | 10 May 2016, 06:02 PM Agree 0
    I fully support Quicken Loans in their fight against the DOJ. They are standing up to a bully. The DOJ is pursuing a false claims act that was crafted for lame horses and rancid food in the civil war. The use of laws like this, coupled with a punitive and arrogant viewpoint of the DOJ is something all Americans should be concerned with.

    Frankly, the DOJ is exaggerating the claims and then using treble damages to make it severe and headline grabbing.

    Furthermore, they want companies and their leadership to destroy their reputation by admitting to something they don't believe they did. That required "admission" reminds me of hostages saying they support their captives agenda and denounce sanity.

    I'm excited that the DOJ can be put in their place. They're irresponsibly and recklessly attacking business and destroying jobs and consumer access to credit. What large lender would want the liability that the DOJ has assigned to good faith mistakes?

  • Gabe | | 10 May 2016, 10:24 PM Agree 0
    What a crock. The settlements are all crock too. No money is exchanged. It's one big lie along with all the other LIES. Its truly pathetic. These forging criminal banksters should be THROWN in JAIL...for at least 50 years. They are allowed to submit fraudulent and forged legal documents and then use their fabricated evidence to foreclose on homeowners who have been bamboozled from the beginning. It's all a charade people, a pathetic charade. BUT...KNOW THIS>>>What goes around comes around..and you can bet your 1000 years will NOT be pleasant.
  • Tom | | 16 May 2016, 07:01 PM Agree 0
    Yeah well I'm in lending and have heard some of their advertisements. Like, "We pay the mortgage insurance so you don't have to". Oh, so they don't raise the interest rate to pay for Lender Paid PMI? Oh so thats not a lie? What smoke and mirrors. I'm sure this was just an error. HA HA BS. They push the envelope until they get caught!
  • Soonerpepa | | 19 May 2016, 09:11 AM Agree 0
    I'm not a fan of Quicken (not a week goes by that I don't do a mortgage for someone who went to Quicken first only to find out they don't deliver on their advertising), but in their defense, $2.10 over the line on DTI is not the reason the mortgage went bad. Anyone that thinks $2.10 per month less in total monthly payments would have not resulted in the mortgage defaulting is a moron. Obviously something else happened resulting in the inability to perform on the mortgage.
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