Final Civil Action: Quicken Loans, Inc., Settled Allegations of Failing To Comply With HUD’s Federal Housing Administration Loan Requirements

The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, in the civil investigation of Quicken Loans, Inc. The investigation was of Quicken’s origination, underwriting, endorsement, and related certifications of Federal Housing Administration (FHA)-insured mortgage loans between September 1, 2007, and December 31, 2011. Quicken has its principal place of business in Detroit, MI. On June 3, 2019, Quicken entered into a settlement agreement with the Federal Government to pay $32.5 million. The United States contends that Quicken knowingly approved loans that violated FHA rules while falsely certifying compliance with those rules. Between 2007 and 2011, Quicken allegedly submitted claims for hundreds of improperly underwritten FHA-insured loans. The settlement was reached through mediation. The settlement was neither an admission of liability by Quicken nor a concession by the United States that its claims were not well founded.