Early this year, megabanks like JPMorgan Chase, Wells Fargo and Bank of America made headlines when they each announced mortgage programs requiring only 3% down from borrowers. Quicken Loans quietly started offering an even better offer late last year–a 1% down mortgage program! While this offer does have certain stipulations and requirements attached to it, many borrowers find this an appealing solution.
Quicken Loans of Detroit is the country’s top home mortgage lender, closing close to half a trillion in loan volume in 2018. Offering conventional, FHA and VA loans as well as fully digital experiences through Rocket Mortgage Technology for customers. Quicken Loans has also been recognized for 10 consecutive years for having “the Highest Customer Satisfaction Rating for Primary Mortgage Origination in the U.S.” and is considered one of the best places to work nationwide as well as being a leading servicer of loans.
The Department of Justice filed a complaint alleging that Quicken broke federal and state law when originating, underwriting, servicing and selling FHA-insured mortgage loans. According to this complaint, senior executives asked appraisers to inflate home values to meet underwriting criteria which ultimately resulted in loans sold off to investors with significant defects. Furthermore, according to this complaint the company concealed deficient underwriting practices and failed to report even one deficiency to government regulators; these allegations have since been refuted by Quicken. They deny these allegations as well.