Additionally, a DEL must certify that every loan endorsed for FHA insurance is underwritten according to the applicable FHA standards.Īccording to the DOJ, Quicken did not adhere to those standards.
HUD said that it relies on DELs to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance. Under the DEL program, neither the FHA nor HUD reviews the underwriting of a loan before it is endorsed for FHA insurance, the DOJ said. District Court for the District of Columbia.Īccording to the DOJ, Quicken was a direct endorsement lender with the FHA, which gave Quicken the authority to originate, underwrite and certify mortgages for FHA insurance.
Now, the government has indeed taken legal action, suing the Detroit-based lender in the U.S. The government’s lawsuit comes days after Quicken sued the DOJ and the Department of Housing and Urban Development, saying that it was left with no alternative but to take this action after the DOJ demanded Quicken Loans make public admissions that were blatantly false, as well as pay an inexplicable penalty or face legal action. The United States government is suing Quicken Loans, accusing the lender of improperly originating and underwriting loans that were insured by the Federal Housing Administration.Īccording to an announcement from the Department of Justice, the government alleges that from September 2007 through December 2011, Quicken “knowingly submitted, or caused the submission of, claims for hundreds of improperly underwritten FHA-insured loans.”