Despite setbacks, Quicken Loans will continue to fight government suit

by Ryan Smith17 Feb 2016
Despite reversals in court, lending giant Quicken Loans says it’s not giving up its fight against the federal government, which has accused the company of knowingly approving shoddy loans to make a quick buck.

The Department of Justice is suing Quicken Loans, accusing the company of committing fraud to push through lousy loans during the financial crisis, according to a report by the Cleveland Plain Dealer. Those loans were backed by the Federal Housing Administration, and left taxpayers to foot the bill when they defaulted.

Quicken Loans is just one of many large lenders the government is suing for fraud. Unlike many of those lenders, however, Quicken is pushing back. In April, the company sued the DOJ and the Department of Housing and Urban Development, claiming the government had used a flawed sample of loans to build its case. That lawsuit, which also demanded a jury trial in Michigan – where Quicken Loans is based – was thrown out in December.

But the company plans to renew its demand that the case be tried in Michigan, according to the Plain Dealer. And it has no intention of rolling over for the government.

“This case is absurd,” Quicken Loans CEO Bill Emerson told the Plain Dealer. “We’re going to continue to fight it.”

Emerson also pointed out that Quicken Loans, the nation’s largest FHA lender, also has the lowest default rate.


  • by Realtor Rick | 2/17/2016 1:31:53 PM

    Good for Quicken Loans. The Federal Government through the CFPB and other agencies have strong armed many lenders into pay-outs that to me appear to be based on questionable evidence. But from the lenders' perspective it is better to pay the bribe and move on than to challenge the charges. At some point some firm has to stand up to the agencies and make them prove their charges.

  • by American Taxpayer | 2/19/2016 4:24:56 PM

    Good for Quicken Loans, Bad for American Taxpayers. What makes them any different than a Chase, Bank of America or a Wells Fargo that have all paid their fair share of fines for their part in the mortgage crisis. All the while, Quicken mortgages owner Dan Gilbert has used Government money to pad his own office building and skyscraper portfolio in the City of Detroit. He has purchased more than 75 Buildings and developments over the last 3 years. Shut up and pay your fair share, like everyone else Dan Gilbert.

  • by SmDu | 2/24/2016 1:33:58 PM

    Quicken mortgages are crooks, and should be put in jail !


Should CFPB have more supervision over credit agencies?