Department of Justice files False Claims Act complaint against Quicken Loans over mortgage underwriting

Department of Justice files False Claims Act complaint against Quicken Loans over mortgage underwriting

April 27, 2015

The Department of Justice’s three-year battle with Quicken Loans over its mortgage underwriting practices came to a head last week, when the DOJ filed suit against the lender seeking to recover treble damages under the False Claims Act.  In its complaint, the DOJ also seeks damages for breach of fiduciary duty and negligence for harm sustained by the U.S. Department of Housing and Urban Development (HUD) in connection with Quicken’s origination of residential mortgage loans.  The week before, in a highly unusual move, Quicken sued the DOJ and HUD claiming that the government wrongfully targeted the company in violation of the Administrative Procedures Act and the Due Process Clause.  Doubling down on this stance, Quicken released a statement on the government’s suit in which it called the DOJ’s complaint “riddled with inaccurate and twisted conclusions from fragments of a handful of emails cherry-picked from 85,000 documents that the DOJ subpoenaed.”  

<< Back to Whistleblower Wire home