Are regulators abusing their power?

by MPA20 Apr 2015
Quicken Loans, the nation's largest Federal Housing Administration (FHA) mortgage lender, has filed suit in Federal District Court against the United States Department of Justice (DOJ) and Department of Housing and Urban Development (HUD).  The company said it “was left with no alternative but to take this action after the DOJ demanded Quicken Loans make public admissions that were blatantly false, as well as pay an inexplicable penalty or face legal action.”

"After three years of struggling to understand the DOJ's position and methodology that would warrant the country's largest and highest quality FHA lender to make untrue admissions and pay an inexplicable penalty or face public legal action, it is time to ask the court to intervene," said Quicken Loans CEO Bill Emerson.  "No threat, including high-profile senseless lawsuits from powerful federal officials, will deter our company and its leadership from doing the right thing."

Quicken Loans said it has provided the DOJ with more than 85,000 documents, including 55,000 emails.  In addition, the DOJ has conducted hundreds of hours of depositions from numerous Quicken Loans team members.  Three years later, the DOJ inquiry has resulted in the threat of a federal lawsuit based on faulty analysis of a miniscule number of cherry picked mortgages from the nearly 250,000 FHA loans the company has closed since 2007.
 
"It's a shame the DOJ would choose to attack the country's largest and highest quality FHA lender providing government lending for homebuyers and homeowners across all 50 states at the very time our nation needs expanded access to credit for middle-class Americans who benefit most from the FHA program.

"The Constitution provides for checks and balances among the three branches of government,” Emerson added. “We are hopeful and confident that after examining the facts, the judicial branch will exercise their authority to provide just relief from this misuse of power.”

Quicken Loans is represented in the suit by Michigan-based Morganroth & Morganroth and Goodwin Procter of Washington, DC.
 

COMMENTS

  • by Been there seen it | 4/20/2015 11:19:13 AM

    Quicken also feels they are providing the highest quality FHA mortgages over all other lenders. I guess they are also a legend in their own mind. I called them out of curiosity more than anything. They did an almost perfect bait and switch. Had I really needed a mortgage, I would have been pissed at the advertised rate versus the quoted rate Tsk Tsk Tsk. I think you probably deserve everything you are getting.

  • by Betsy | 4/20/2015 11:54:01 PM

    Good for you Quicken!

Poll

Is TILA-RESPA a good or bad thing long term?