On Friday, Judge Gerald E. Rosen announced that Quicken Loans and the United States and the Department of Housing and Urban Development (HUD) reached an agreement in the case of United States v. Quicken Loans Inc., stating that Judge Mark A. Goldsmith entered an order dismissing the lawsuit.
The case originated in 2015, when the U.S. Department of Justice filed a lawsuit claiming that Quicken Loans had originated hundreds of FHA-backed loans between September 2007 and December 2011 that were not eligible for the program because of Quicken Loans' lenders allegedly overstating borrowers' income so they could qualify for the loans, Crain's Detroit Business reports.
“This resolution is in the interests not only of the parties, but of the home-buying public,” said Rosen in a statement. “All parties fully understand the important role the FHA program plays in helping middle-class Americans access home financing, and this resolution allows the parties to move ahead together with that mission and to ensure their future relationship. I commend the parties for investing the time and effort through this mediation, which will help support the continuation and the strengthening of the partnership between Quicken Loans and HUD in jointly serving American homeowners.”
“Today, HUD reached an important resolution with Quicken Loans so that, together, we may continue offering safe and sustainable mortgage financing to qualified, creditworthy borrowers,” said Amy Thompson, HUD’s Assistant Secretary for Public Affairs. “FHA relies on its partnerships with lenders, such as Quicken Loans, to advance home buying opportunities for Americans, and we look forward to continuing our relationship with Quicken Loans.”
“We have always been proud of our growing participation in the FHA program. Every day teachers, police officers, factory workers and so many others who are the backbone of our communities, utilize Quicken Loans for this very important loan program,” said Jay Farner, Quicken Loans CEO. “Now that this dispute is behind us, we look forward to cultivating and expanding our relationship with both FHA and HUD so we can increase Americans’ access to home financing and home ownership,” Farner added.