The government forced Quicken Loans to pay $250,000 to the Washington State Department of Financial Institutions as part of the settlement. Officials believe it could have misled thousands, even millions of veterans, into applying for a loan they thought was offered through the government. Don’t use a telemarketer from Detroit – stay local The original ad, which was mailed to veterans in 2015, included an eagle encircled by two dozen red starts and a watermark that had the words "United States Veterans Department." Many thought the mailer was an official government document when it was actually a solicitation for a "prequalified" mortgage loan.Īre You a Veteran? Find out if you qualify for a VA loan. This is important to those in San Diego because so much of the local economy is rooted in the military. Reason 3 - Quicken was caught with a misleading advertisement aimed at veterans. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. This consent applies even if you are on a corporate, state or national Do Not Call list. You also agree to our Terms of Service, and to our Privacy Policy regarding the information relating to you. It’s important to have a mortgage lender that understands all aspects of the area rather than use a one-size-fits-all method to get a home loan approved.īy proceeding, you consent to receive calls and texts at the number you provided, including marketing by auto-dialer, pre-recorded voicemail, and email, from this site's operators about real estate related matters, but not as a condition of purchase. Some neighborhoods are transitioning and others are older. San Diego is unique in that there are many different neighborhoods with different price ranges and home market values. There isn't one person to talk to about your loan and everything is done by phone or on the web. Quicken is based in Detroit, so dealing with them can be a hassle.
Those who buy homes in San Diego are served best by banks and mortgage lenders who have branches in the area. Reason 2 - Quicken is not a local company. The company alleges the DOJ was attempting to force it to make false public admissions and pay a penalty regarding the FHA lending practices. Quicken denied the charges and sued the DOJ and the Department of Housing and Urban Development. Want to work with someone local? If you have had a job (or business) for 2 years or more, a 640 or higher credit score, you might qualify for down payment assistance (doesn’t matter if you have owned before)… The result was the company had bigger profits from FHA-insured mortgages. The allegations go as far to state that Quicken had an underwriting process that led to employees disregarding FHA rules and falsely certifying underwriting requirement compliance. Quicken was charged by the DOJ with violating the False Claims Act by knowingly submitting hundreds of loans for FHA mortgage insurance that where improperly underwritten. The mortgage company and the DOJ are going to try to negotiate the matter one more time. This legal battle began four years ago and will head to court in August. Reason 1 - Quicken faces accusations from the Department of Justice that it encouraged employees to ignore Federal Housing Administration (FHA) rules.
Reason 5 - Quicken's ownership is revolving.
Reason 4 - Quicken employees said it is dishonest in its lending practices.