Attorney on Quicken’s Lawsuit; Fixing Appraisal System; Final Rules on AMCs

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.”


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