Quicken Loans to Face DOJ in Washington, Not Detroit – NMP Skip to main content

Quicken Loans to Face DOJ in Washington, Not Detroit

Jan 04, 2016

Lost in the New Year’s Eve shuffle of falling confetti and popping champagne corks was an ignoble end to Quicken Loans’ attempt to preemptively sue the federal government ahead of Washington’s legal challenge to the Detroit-based lender.

According to a Detroit Free Press report, a federal judge dismissed Quicken Loans’ efforts to have the Department of Justice’s case against the company heard in Detroit instead of in U.S. District Court in Washington, D.C. The company brought its lawsuit ahead of the DOJ’s litigation, which involves charges of improper underwriting on Federal Housing Administration (FHA)-insured mortgages.

"Given the procedural posture in this case, it certainly appears as though Quicken's complaint was filed for the purpose of acquiring a favorable forum," wrote Judge Mark Goldsmith in a 24-page decision. "Quicken filed its lawsuit less than a week before the looming (government) enforcement action was filed."

Judge Goldsmith added that having the case heard in Washington would be "the preferable arena" for addressing a case of this nature.

Quicken CEO Bill Emerson issued a statement on Thursday afternoon that brushed aside the ruling and continued the company’s charges that the federal government had no case against the company.

"This temporary procedural setback does not deter Quicken Loans from exposing the truth about the DOJ's egregious attempts to coerce unjust 'settlements' from its victims including Quicken Loans by using the guise of the heavy hand and power of the federal government in doing so," said Emerson.

The DOJ offered no public comment on Judge Goldsmith’s ruling.

About the author
Published
Jan 04, 2016
CFPB Weighs Changes To TRID Timing And Mortgage Rescission Rules

The bureau is seeking feedback on whether federal disclosure requirements raise costs, delay closings or limit access to mortgage credit

CFPB Issues AI Underwriting Guidance On Adverse Action Notices

The agency says proprietary and machine-learning models do not relieve lenders of their fair lending and disclosure responsibilities

VantageScore Says 4.0 Model Could Unlock $1 Trillion In Mortgage Originations

New study says VantageScore 4.0 scores five million more creditworthy borrowers than FICO Score 10T, expanding lending opportunities as the industry prepares for the GSE credit score transition

MISMO Updates Mortgage Insurance Standards To Support FICO 10T, VantageScore 4.0

New implementation guide standardizes mortgage insurance data exchange, helping lenders, insurers and technology providers prepare systems for newer credit scoring models

Congress Weighs New Roadmap To End Fannie, Freddie Conservatorship

Rep. Scott Fitzgerald's three-bill housing package would establish a statutory framework for releasing the GSEs while expanding construction lending and easing some TRID compliance requirements

CHLA Backs Bank Capital Proposal, Questions Impact On Mortgage Lending

Trade group supports lower mortgage risk weights but says broader market forces — not capital rules — drove banks' retreat from the market