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As a result of Quicken's position as the biggest contributor to FHA-insured credit in the United States, the complainant states that, despite having the slowest FHA defaults in the nation, the DOJ set its sights on the firm for an inquiry sometime in 2012. Even though the Quicken administration reportedly declared to Quicken that it was part of a comply audit in all major FHA lending institutions, the creditor was growing worried as the lawsuit protracted and became more aggressive. Now, the FHA is not yet ready to take any action.

Finally, Quicken contends that the once routinely conducted inquiry was turned into a three-year fight in which the DOJ summoned over 85,000 papers, took affidavits from several Quicken officials, and threatens to bring a high-profile suit against Quicken. DOJ and HUD OIG have reportedly requested that Quicken: 1 ) for seven - and eight-digit mortgage deficits resulting from an erroneous, non-representative mortgage loan assumption; and 2 ) acknowledge in public (and, as Quicken maintains, erroneously) that its credit policies were erroneous.

Mr Quicken claimed that this request was backed by no more than 55 lending documents "selected" from more than 246,000 FHA loans contracted by the group. Quicken's allegation is that the DOJ and HUD OIG use unsound sample methods and that none of the agencies' concern about these 55 loans was essential to the general exposure to or cause of failure.

Mr. Quicken alleged that the inquiry has considered any alleged or slight non-compliance with the FHA Guidelines as a possible breach of the False Claims Act. However, Quicken did not believe that the FHA Guidelines had been violated. Thus, the creditor argues that both DOJ and HUD OIG have exceeded their regulator and put the whole FHA programme in danger, as the creditors are concerned that the nature of state control is similar to Quicken.

There are two ways Quicken alleviates his complaints. Firstly, Quicken asks the tribunal to prohibit the incorrect methods used by the federal administration to establish credit adherence. Secondly, Quicken applies for a ruling that all Quicken's 2007-2011 loans comply with current FHA policies and programme funding requirement.

Using this suit, Quicken aggressive attempts to alter the dynamics of dialog with HUD about FHA mortgage loans that have emerged Quicken. Whether this policy will pay off or what long-term impact such research will have on creditors offering FTA loans will remain to be seen.