Lending giant CEO says company won’t settle with DOJ

by Ryan Smith10 May 2016
The head of Quicken Loans says the lending giant has no intention of settling with the government over allegations of filing false claims on federally insured mortgages.

Last year, the Justice Department accused the lender of submitting claims for hundreds of improperly underwritten FHA-insured loans. Quicken Loans isn’t the first lender the DOJ has gone after for this issue, and the agency has so far recovered more than $100 million in settlements. But Quicken Loans CEO Bill Emerson told CNBC his company won’t be settling.

“For us, it’s not something we can even begin to stomach,” Emerson said on CNBC’s Squawk Box. “(To look our 12,000 team members in the eye and say, ‘Guess what, we committed fraud against the United States government … we didn’t. We won’t say it.”

Emerson said that although Quicken Loans underwriters had occasionally made simple errors, that wasn’t the same thing as conscious fraud.

“An example, we miscalculated income by $2.10. We over-lent somebody by $26 on a loan program,” Emerson told CNBC. “Those are the type of things the Department of Justice is saying is committing fraud against the United States government. And it’s just dead wrong.”

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