- Alleging a "political agenda under which the DOJ is ‘investigating’ and pressuring large, high-profile lenders into paying nine- and 10-figure sums and publicly ‘admitting’ wrongdoing," Quicken Loans files a lawsuit against the DOJ and HUD over their investigation of the company's FHA-backed loans.
- In this, Quicken is daring to go where powerhouses like JPMorgan, U.S. Bancorp, and SunTrust - all of whom took out their checkbooks to make the investigations go away - feared to tread. Not being publicly traded helps, as does not having to rely on D.C. for approval to return profits to shareholders.
- In its complaint, Quicken says Justice based its settlement demands on a sampling of 55 out of 246K loans and found defects too small to even call rounding errors. The government used similar procedures against the publicly traded names, relying on a Civil War-era law allowing for triple damages if there are any errors.
- Source: WSJ