A judge has dismissed a case between Detroit’s Quicken Loans Inc. and the United States and the Department of Housing and Urban Development related to the mortgage company’s participation in the department’s FHA lending program. Quicken Loans will pay $32.5 million, and there are no findings against the company.
Mediator Judge Gerald E. Rosen proposed the following, and both parties accepted: “In full resolution of the case through a dismissal with prejudice of the case and with no findings or admissions, Quicken Loans will pay the United States the amount of $32.5 million.
The mediator understands that the parties differ as to how that gross amount should be attributed and calculated. In order to resolve the case, the mediator proposes that this lump sum be attributed as follows: $25.5 million attributed to making the government whole for any losses it may have incurred, together with $7 million in interest on that amount.”
Judge Mark A. Goldsmith dismissed the case. Rosen’s proposal was neither party’s suggestion.
The resolution allows both parties to continue to offer the FHA program, which helps middle-class Americans access home financing.
“Today, HUD reached an important resolution with Quicken Loans so that, together, we may continue offering safe and sustainable mortgage financing to qualified, creditworthy borrowers,” says Amy Thompson, assistant secretary for public affairs for the department. “FHA relies on its partnerships with lenders, such as Quicken Loans, to advance home buying opportunities for Americans, and we look forward to continuing our relationship with Quicken Loans.”
“We have always been proud of our growing participation in the FHA program. Every day teachers, police officers, factory workers, and so many others who are the backbone of our communities utilize Quicken Loans for this very important loan program,” says Jay Farner, CEO of Quicken Loans. “Now that this dispute is behind us, we look forward to cultivating and expanding our relationship with both FHA and HUD so we can increase Americans’ access to home financing and home ownership.”