DETROIT, April 17, 2015 /PRNewswire/ -- Quicken Loans, the
nation's largest Federal Housing Administration (FHA) mortgage
lender, today filed suit in Federal District Court against the
United States Department of Justice (DOJ) and Department of Housing
and Urban Development (HUD). The company 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.
By the FHA's own objective public reporting, Quicken Loans has
been, and is currently, ranked the highest quality (lowest default
rate) lender of any FHA originator in the country - closing
significant volume.
Quicken Loans is the nation's largest FHA lender and has
originated the government agency's best performing loan portfolio.
According to the FHA's publicly available data, Quicken Loans
maintains the lowest compare ratio – the default rate of a single
lender compared to FHA's total mortgage portfolio.
In addition, through Quicken Loans' participation in FHA's
program, the government is projected to receive more than
$5.7 billion in net profits from the
insurance premiums collected above and beyond claims made from over
$40 billion in FHA home loan volume
closed by Quicken Loans during the 2007 -2013 timeframe.
Quicken Loans has achieved FHA's highest quality ranking which
has led to extraordinary profitability for FHA's insurance program
due to its robust attention and focus on quality control along with
its thousands of highly trained and experienced team members
and industry leading processes and technology.
Quicken Loans' success in originating the industry's top-quality
FHA mortgages has not gone unnoticed. On multiple occasions,
representatives from FHA have visited Quicken Loans' office to
study the company's underwriting processes and best-practices to
learn how Quicken Loans' FHA lending has grown substantially, while
at the same time becoming the gold-standard in quality for FHA
lending.
"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. We will stand in defense of our impeccable reputation
established by thousands of hard-working ethical team members over
our 30-year history."
Quicken Loans 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 home owners 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. 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,"
Emerson concluded.
Quicken Loans is represented in the suit by Michigan-based Morganroth & Morganroth and
Goodwin Procter of Washington, DC.
About Quicken Loans
Detroit-based Quicken Loans
Inc. is the nation's second largest retail home mortgage lender and
largest FHA lender. The company closed $140
billion of mortgage volume across all 50 states in
2013-2014. Quicken Loans generates loan production from web centers
located in Detroit, Cleveland and Scottsdale, Arizona. The company also operates
a centralized loan processing facility in Detroit, as well as its San Diego-based One Reverse Mortgage unit.
Quicken Loans ranked "Highest in Customer Satisfaction for Primary
Mortgage Origination" in the United
States by J.D. Power for the past five consecutive years,
2010 – 2014, and highest in customer satisfaction among all
mortgage servicers in 2014.
Quicken Loans was named among the top-30 companies on FORTUNE
magazine's annual "100 Best Companies to Work For" list for the
last 12 consecutive years, ranking No. 12 in 2015. It has been
recognized as one of Computerworld magazine's '100 Best Places to
Work in IT' the past 10 years, ranking No. 1 in 2014, 2013, 2007,
2006 and 2005. The company moved its headquarters to downtown
Detroit in 2010, and now more than
10,000 of its nearly 12,000 team members work in the city's urban
core. For more information about Quicken Loans, please visit
QuickenLoans.com, on Twitter at @QLnews, and on Facebook at
Facebook.com/QuickenLoans.
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SOURCE Quicken Loans