"After three years of struggling to understand the DOJ's position and methodology,” said Quicken CEO Bill Emerson, “it is time to ask the court to intervene. The Detroit-based lender claims the government has enjoyed “extraordinary profitability for FHA's insurance program” through its efforts, saying the company’s participation in FHA's program will earn the government more than $5.7 billion in net profits “from the insurance premiums collected above and beyond claims made from over $40 billion in FHA home loan volume closed by Quicken Loans during the 2007 to 2013 timeframe.” Department of Justice and the Department of Housing and Urban Development, claiming the agencies have been trying to bully the company into making “blatantly false” statements and demanding the company pay “an inexplicable penalty or face legal action,” according to a statement released by Quicken. District Court for the Eastern District of Michigan against the U.S. The lender filed a suit in April 2015 in the U.S. Morganroth said that the case was filed in the Detroit Federal Court in April 2015 and "that is the most appropriate, proper, and convenient location for a case like this." Their default rate is three times better than the FHA pool of lenders." Quicken also has the lowest default rate for the loan that they originate for the FHA out of any large lender.
"That is based on FHA’s own published statistics. "Quicken Loans is the number one FHA lender both in quality and quantity," he stated. Morganroth said in an interview Friday that Quicken deems Detroit to be an "appropriate, proper and convenient location" to hold the proceedings of the case. Morganroth, Managing Partner of Morganroth & Morganroth and attorney for Quicken Loans, sat down exclusively with DS News to explain the lender's case in further detail and the company's reason for wanting to move the case from Washington, D.C., to Detroit, Michigan.
Attorney Brian Hudak filed a 376-page motion stating, "The Court should not reward Quicken Loans’ filing of meritless pre-emptive suit by granting it its favored forum when this district is an appropriate forum for the case to proceed," Hudak said.
The most recent controversy from this case involves where the case should be tried. The government agencies believe that the case should be situated in Washington, D.C., while Quicken recently submitted a renewed request to move the case to Detroit, Michigan, according to a report from The Detroit News. Quicken Loans is in the midst of a government lawsuit for allegedly knowingly submitting claims for hundreds of improperly underwritten Federal Housing Administration (FHA)-insured loans and where that case will be settled.
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