Last Friday, June 14, 2019, the Department of Justice dismissed the lawsuit filed against Quicken Loans. The news follows Quicken Loans’ decision to settle over its involvement in the Federal Housing Authority’s lending program. The settlement totals to $32.5 million, reports CNN.
The company remains mum about the issue, failing to issue a statement that expresses guilt or acknowledge its involvement in the case, states Housing Wire. Despite this, the corporation has agreed to enter a $32.5 million settlement. Of this amount, $25.5 million will be given to the government, while the $7 million will be paid off as interest.
Controversial Lawsuit
In 2015, Quicken Loans was involved in a lawsuit filed by the government. The government claims that the corporation “knowingly approved hundreds of loans insured by the FHA to unqualified borrowers,” reports CNN. After the borrowers failed to pay, Quicken made a profit on the loans, resulting in millions of damages shouldered by the government.
Last April 2019, Judge Mark Goldsmith from the United States District Court ordered the federal government and Quicken to comes to a resolution. Following this order, former federal Judge Gerald Rosen facilitated the mediation, notes Crain’s Detroit Business.
Moving Forward
The corporation stands by its innocence on the case, with vice chairman Bill Emerson maintaining that the “company never committed fraud,” with initial claims becoming smaller, relays Crain’s Detroit Business.
After the decision to settle, the lending firm issued a statement to the public. Jay Farner, chief executive officer of the business, said that “We have always been proud of our growing participation in the FHA program. Now that this dispute is behind us, we look forward to cultivating and expanding our relationship with both FHA and HUD so that we can increase Americans’ access to home financing and ownership,” as reported by CNN.
