The Justice Department said a federal judge should reject Detroit-based Quicken Loans efforts to move the government’s lawsuit to a Michigan court instead of having it heard in Washington, D.C.
In a lengthy legal filing Thursday, the Justice Department said Washington “has strong ties to this case … (and) is convenient to witnesses.”
“Quicken merely seeks to shift burdens of travel away from Quicken itself and onto the United States” government witnesses, the Justice Department said.
The Justice Department sued Quicken in April, alleging the lender violated mortgage underwriting rules and ignored “red flags” on dicey home loans, costing the federal government millions of dollars on FHA-insured mortgages.
On Friday, Quicken reiterated that it believes the government’s suit should be heard in Michigan, arguing that the case has little connection to Washington. The Justice Department notes that FHA and the U.S. Treasury — which ultimately paid for the claims — are in Washington.
