DETROIT (CBS DETROIT/ AP) — A lawsuit accusing Quicken Loans of fraudulently sticking the government with bad mortgages settled Friday at $32.5 million.

The case was dismissed by a Detroit federal judge.

When it came to verifying income of certain borrowers, Quicken Loans was accused of cutting corners and seeking improper appraisals so it could make a larger mortgage. The loans were insured by the Federal Housing Administration, which paid Quicken if a borrower defaulted.

Quicken denied the allegations and will remain in the FHA program.

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