I Must Apologize; I Got it Wrong…
Your employees did not come from Taco Bell, they delivered your pizza!
In a recent New York Times article by Julie Creswell on 01/21/2017, former executives of Quicken Loans confirm “many employees come in with little or no background in financial services. One employee joined after delivering pizzas to the Quicken Loans Offices”. No need to say anymore, that statement speaks volumes.
The article titled “Quicken Loans, the New Mortgage Machine” is a tell all article, right down to the founder and Chairman Dan Gilbert’s physical altercation on a former colleague at a religious function, to his public tirade against LeBron James, right back to his arrest for operating an illegal football betting ring in college. We will not even mention his accusations of a New York Times Reporter avoiding him by not responding to his text messages…. Just an FYI, text messaging is not a professional means of communication. And then there is this guy in the pink tutu roaming the halls of Quicken Loans. Ms. Creswell describes the atmosphere at Quicken Loans “Glengarry Glen Ross meets Seussville” with “canopies in a kaleidoscope of vivid pinks, blues, purples and greens.” To see the entire article, click here.
After several years of investigating Quicken Loans, In April 2015, the Department of Justice (DOJ) and Department of Housing and Development (HUD) approached Quicken Loans about the quality of the loans submitted to FHA. The DOJ wanted restitution from Quicken Loans for loans that did not meet HUD/ FHA requirements. Quicken Loans in turned filed a law suit against the DOJ and HUD accusing them of targeting them with a “shake down” due to their large size. Six days later, the DOJ and HUD filed a counter suit against Quicken Loans. The suit filed by Quicken Loans against the DOJ and HUD was dismissed because there was no evidence to support the claim the DOJ and HUD were targeting Quicken Loans. See the case here.
The case against Quicken Loans filed by the DOJ and HUD is still active. Quicken Loans filed a motion to have the case moved to Detroit, claiming all the witnesses and employees reside in the Detroit area. The Judge granted that motion and the case is now in the hands of U.S. District Judge Mark A. Goldsmith in Detroit. Quicken Loans filed another motion to have the case dismissed. Unfortunately for Quicken Loans, Judge Goldsmith, whose courtroom is mere blocks away from Quicken Loans Offices, has ruled the case will continue as “the allegations in the complaint support an inference that (the) FHA would not have insured the particular loans at issue in this case had it known of Quicken’s alleged non-compliance with underwriting requirements.” There are claims Quicken Loans miscalculated income, ignored red flags on loan applications and created a value-appeals process, which “permitted employees to request specific inflated values from appraisers in order to make a loan eligible for FHA insurance.” See the 65 page lawsuit here.
On another front, as of January 2017, Quicken Loans is the defendant of several other lawsuits. According to Samantha Joseph of Business Review, Quicken Loans is in violation of The Telephone Consumer Protection Act. According to one litigant, Quicken Loans failed to stop texting a borrower after they were asked 264 times to stop texting. Additionally a class action suit is pending for robo-calls to the wrong number by Quicken Loan. See the article in Business Week here. Again, text messaging is not a professional means of communication.
From the Better Business Bureau’s Website:
Quicken Loans Agrees to contribute $250,000 to financial education to settle allegations of targeting Veterans and Service Members with false, deceptive and misleading advertising.
”Olympia, WA – The Consumer Services Division of the Washington State Department of Financial Institutions (DFI) has settled its charges that Quicken Loans, Inc. targeted Washington service members and veterans with false, deceptive, and misleading mortgage offers. In resolving the charges, DFI has received assurance that Quicken Loans will comply with state and federal advertising law going forward.” See the entire settlement here.
Quicken Loans is a sister company to Title Source / TSI Appraisal. Title Source/TSI Appraisal is a member of REVAA; you know the AMC trade group that has been making false claims to legislators throughout the country. Jeff Eisenshtadt, President of Title Source is the very same guy that told Ken Harney a few weeks ago
“Consumers don’t care about the individual costs of the pickles and onions and lettuce that go onto a hamburger, nor should they when it comes to appraisals”.
Maybe there are former burger flippers working at Quicken Loans too.
By John J. Appraiser, Certified Real Estate Appraiser – author requested to remain anonymous