Dan Gilbert continues to insist that his mortgage empire, Quicken Loans, has done nothing wrong. The Justice Department insist it has, saying it ignored red flags on bad home loans that cost the government millions of dollars.
They face off before U.S. District Judge Mark A. Goldsmith in Detroit, where Quicken Loans will ask Monday that the case be dismissed, reports Jennifer Chambers of The Detroit News. The Justice Department filed the case in April 2015, and since then, Quicken has declined to settle out of court.
If necessary, both sides will go over a schedule of court dates leading to an April 11, 2019, trial date in what would likely be a very long, drawn out case.
Federal prosecutors say the company knowingly submitted claims for hundreds of improperly underwritten Federal Housing Administration-insured loans that ended up costing the government millions when the loans went bad. The loans involved inflated appraisals, poor credit risks and borrowers with insufficient incomes, the government claims.
