Quicken Loans Agrees to Pay Millions to Settle Lawsuit
Detroit-based Quicken Loans has agreed to fork over millions in response to a lawsuit claiming it stuck the government with bad mortgages.
The government accused the business, owned by Detroit native Dan Gilbert, of cutting corners when verifying incomes.
The company will now pay $32.5 million to settle the lawsuit.
Quicken was also accused of seeking improper appraisals of houses so it could make mortgages bigger.
These loans were insured by the Federal Housing Administration, which paid Quicken Loans if borrowers defaulted.
A company official says they did nothing wrong but will pay for what it calls costs involving “human error.”