“…the lawsuit (Quicken vs. the DOJ) gives voice to an increasingly popular sentiment among financial institutions: that the government is, for political reasons, extracting hundreds of millions, if not billions, of dollars in settlements for what are at best technically and immaterially incorrect claims.”, Matthew Schwartz, partner, Boies, Schiller, and Flexner, April 2015

Excerpt from April 2015 Mortgage Industry Newsletter:

 

“Many lenders are watching this battle of industry frustration from the sidelines: Quicken vs. the DOJ, and vice versa. Prior to the government suing Quicken, Matthew Schwartz, a former federal prosecutor who is now a partner at Boies, Schiller & Flexner in New York, wrote, “Quicken Loan’s decision to sue the Government over what it has alleged is arbitrary and capricious conduct related to the investigation of Quicken’s lending practices is unconventional, to say the least. The lawsuit itself is a legal long shot. The government generally has immunity and great discretion where it doesn’t, over how it conducts its investigations or settles enforcement actions. But the lawsuit gives voice to an increasingly popular sentiment among financial institutions: that the government is, for political reasons, extracting hundreds of millions, if not billions, of dollars in settlements for what are at best technically and immaterially incorrect claims. While the government will probably win this lawsuit, if Quicken’s allegations are correct, it may be forced to explain its conduct in a way that will undermine the law enforcement effect of this and other recent enforcement actions.””

Posted on April 27, 2015, in Postings. Bookmark the permalink. Leave a comment.

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