Quicken Loans Fraud On FHA Loans Is Costing Florida Dad With 4 Kids His Home
Adam Dean thought he and his four kids were safe in their home when his girlfriend walked out. Now she is trying to evict them from the home and she’s using Quicken Loans fraud as her weapon of choice.
The story begins in May of 2013 when Adam and his then-girlfriend Danielle Headrick called and spoke to Andrew Kuhn at Quicken Loans in Detroit about refinancing her home.
Kuhn put the couple into a 15-year FHA loan for $41,259.00 with a fixed interest rate of 3.75%. The closing documents indicate Andrew Kuhn did nothing wrong. The Quicken Loans fraud happened after the loan went into underwriting. The fraud also includes Dan Gilbert-owned title company, Title Source.
People think FHA loans are still reviewed by real people. They are not. Mortgage underwriting is all automated and approval is based on the information keyed into the system by the originating lender.
It appears the Dean/Headrick loan was only approved because Quicken Loans fed fraudulent information into the FHA automated approval system.
FHA guidelines require non-married couples (gay or straight) to qualify for the loan individually. They can both be on title and on the mortgage and note together. However, they must qualify individually in case of a breakup.
Quicken Loans didn’t do this. Instead, Quicken Loans underwriters treated them as a married couple. They used Adam’s income to qualify the two of them for a loan. Danielle was not working and had no income. Quicken knew FHA would deny the loan because of Danielle’s lack of income. So they conveniently left it out and submitted the loan request as a married couple.
This Case Is One Example Of Quicken Loans Fraud And Why The Government Is Suing Quicken Loans Over FHA Loans
Quicken Loans fraud is nothing new. The US Department of Justice is currently suing the Detroit-based lender under the False Claims Act. The government alleges Quicken fraudulently inputted false information into the FHA automated underwriting system. This fraudulent information is what got these loans approved.
The False Claims Act lawsuit filed by the DOJ was a result of a three-year investigation by HUD. HUD oversees FHA. Gilbert alleges HUD only found problems in 55 loans from September of 2007 through December 31, 2011.
Gilbert also claims HUD subpoenaed over 85,000 loans. 85,000 loan files seem highly unlikely. It sounds like Gilbert made up the number in an attempt to play the victim.
HUD monitors any loans they have to pay a claim on. They also have systems that alert them if there is series of defaults in loans originated by a specific lender. HUD officials pay the lender a visit. They examine the files that they have paid claims on.
HUD requests to review of all loans they deem may be at risk of default if they see a pattern.
HUD alleges they found fraud and damaging emails from executives trying to cover up the fraud. The amount HUD paid out to cover deficiencies is unknown. However, the Detroit News claims:
This dollar figure sounds exaggerated based on the 55 loans Gilbert claims the DOJ found problems with. Gilbert’s claim of 55 loan files only allows for a maximum fine of closer to $15 million.
HUD would need to find roughly 200 or more loans riddled with fraud to pursue a $100 million settlement.
Amrock Title Aided In The Quicken Loans Fraud In The Dean Case
Title Source now known as Amrock Title did the closing for Adam Dean and Danielle Headrick.
Quicken Loans owner Dan Gilbert also owns Amrock. The title company does all of the mortgage closings for Quicken Loans.
Amrock also has its own sordid past. You can read about it here.
As mentioned previously, Quicken Loans treated the Dean/Headrick application like a loan application for a married couple because it was the easiest way to get the loan through FHA underwriting.
It helped that Danielle Headrick had a private mortgage lien on the property from a family member. Quicken Loan underwriting knew Danielle could not qualify individually so they put Adam Dean on the loan. Then used Adam’s income and job history to get the loan through underwriting.
At the closing, Quicken Loans and Title Source put the two of them on the mortgage and the note as “Tenants-In-Common.”
This means that both Adam and Danielle used this property as their primary residence. This also means that they are both liable for the mortgage if one of them leaves the property.
FHA also requires both “mortgagors” to be placed on the deed. Yet, Title Source failed to add Adam’s name to the deed when he and Danielle refinanced the property.
Everything was fine until Adam and Danielle broke up and Danielle ran off with another guy. Now Danielle wants to move back and wants Adam out.
Danielle is using Quicken Loans fraud as her weapon of choice. Her lawyer has successfully argued that since Adam Dean is not on the deed that he has no rights to be in the house. Therefore, he and the kids must move out immediately.
Now Adam and the kids are on the verge of homelessness. He is also responsible for a mortgage loan on a house he apparently doesn’t own. All thanks to Quicken Loans fraud.