Quicken Loans' squeaky-clean image as a mortgage good guy is about to take a hit as lawsuits brought by borrowers and former employees head to court, according to a new story by the Center for Public Integrity. The plaintiffs accuse the company of using high-pressure salesmanship to target elderly and vulnerable homeowners, as well as misleading borrowers about their loans, and falsifying property appraisals and other information to push through bad deals.
This past November, Quicken Loans ranked as the highest among primary mortgage lenders in the J.D. Power and Associates 2010 U.S. Primary Mortgage Origination Satisfaction Study based on responses from 3,401 consumers who originated new mortgages.
Last February, a state court judge in West Virginia found that Detroit, Mich.-based Quicken had committed fraud against a homeowner by misleading her about the details of her loan, charging excessive fees, and using an appraisal that exaggerated the value of her home by nearly 300 percent. The judge called the lender’s conduct “unconscionable.”
A group of ex-employees, meanwhile, have gone to federal court to accuse Quicken of abusing workers and customers alike. In court papers, former salespeople claim Quicken executives managed by bullying and intimidation, pressuring them to falsify borrowers’ incomes on loan applications and to push overpriced deals on desperate or unwary homeowners.
Click here to read the full story.
For more information, visit www.publicintegrity.org.