Watch CBS News

Federal Lawsuit Against Quicken Loans: Gilbert Says Company Did It The Right Way

DETROIT (WWJ) - Detroit entrepreneur Dan Gilbert is speaking publicly for the first time about the federal government's lawsuit against his company Quicken Loans.

Gilbert told reporters Tuesday  that he's not spending too much time in his fight against the Justice Department's allegations.

The federal government says Quicken Loans falsified incomes and made FHA (Federal Housing Administration) loans to borrowers that clearly did not have the means to pay it back reports WWJ's Sandra McNeill.

The FHA, which is a government agency, insures mortgages to help banks lend to buyers who might not be able to get loans otherwise.

Gilbert says his other ventures are not being affected. "We've gotten emails and letters from people all over the country, not just in the home lending business but all over the country -- standing behind us, and understanding this is a moral, ethical type of battle."

The government's lawsuit states that Quicken Loans cost the government millions -- by issuing millions of FHA loans to people who did not qualify.

Gilbert has filed a preemptive lawsuit claiming the Department of Justice is trying to force Quicken Loans into a cash settlement for something he didn't do.

"You build a company for 30 years and you do it the right way - you rank number one in quality by FHA itself. Number one out of thousands of lenders by their own numbers not ours - so it's quite interesting that something like this would happen," said Gilbert.

Asked if he would entertain settling the case: "I think I've stated everything," said Gilbert ending the interview.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.