The U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG), assisted the U.S. Department of Justice (DOJ), Washington, DC, in the civil investigation of Quicken Loans, Inc. The investigation was of Quicken’s origination, underwriting, endorsement, and related certifications of Federal Housing Administration (FHA)-insured mortgage loans between September 1, 2007, and December 31, 2011. Quicken has its principal place of business in Detroit, MI.
On June 3, 2019, Quicken entered into a settlement agreement with the Federal Government to pay $32.5 million. The United States contends that Quicken knowingly approved loans that violated FHA rules while falsely certifying compliance with those rules. Between 2007 and 2011, Quicken allegedly submitted claims for hundreds of improperly underwritten FHA-insured loans. The settlement was reached through mediation. The settlement was neither an admission of liability by Quicken nor a concession by the United States that its claims were not well founded.
Recommendations
General Counsel
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Status2019-CF-1805-001-AOpenClosed$32,500,000.00Questioned Costs
Recommendations with questioned costs identify costs: (A) resulting from an alleged violation of a law, regulation, contract, grant, or other document or agreement governing the use of Federal funds; (B) that are not supported by adequate documentation (also known as an unsupported cost); or (C) that appear unnecessary or unreasonable.
Closed on September 30, 2019Acknowledge that $32,500,000 in the attached settlement agreement represents an amount due HUD, less DOJ’s civil debt collection fees.