Select Page

Consent Order Quicken Loans, Inc. and another Reverse Home Loan, LLC

Date: 04/20/2018
Organization: Division of Banks
Docket quantity: 2017-005
Location: Detriot, Michigan and north park, Ca

WHEREAS, an study of Quicken Loans was carried out pursuant to General Laws chapter 255E, part 8, at the time of August 2, 2016, to evaluate Quicken Loans’ lending performance under Mortgage Lender Community Investment standards described into the Division’s legislation 209 CMR 54.00 et seq.;

WHILE, the Report of Examination (Report) given pursuant towards the Division’s study of Quicken Loans as of August 2, 2016 alleged substantial non-compliance with applicable Massachusetts and federal statues, guidelines, and laws regulating the conduct of these engaged in the business enterprise of a mortgage loan provider in Massachusetts pertaining to Quicken Loans’ reporting of specific information elements beneath the Residence Mortgage Disclosure Act (HMDA);

WHILE, an study of ORM ended up being carried out pursuant to General Laws chapter 255E, section 8, at the time of November 6, 2017, to assess ORM’s compliance with the legal guidelines applicable to its company;

WHILE, the Division has made no discovering that either business has interpreted and used such legislation in bad faith and for the goal of deliberately avoiding its reporting responsibilities under HMDA; and

WHILE, the Division and Quicken Loans now look for to solve by mutual contract the issues identified within the Report, plus the Division and ORM now look for to eliminate by shared contract comparable things arising relating to the referenced study of ORM.

dining dining Table of articles

Consent Order

NOW COME the events within the matter that is above-captioned the Division plus the organizations, and stipulate and agree as follows:

  1. The recitals set forth above are incorporated and produced right part with online payday loans Gloucestershire this purchase.
  2. As a result towards the Report, Quicken Loans has implemented specific modifications to its policies and procedures for collection and reporting of HMDA data, such that it treats consumer that is certain as applications for HMDA-reporting purposes at an early on phase than have been the situation before the issuance for the Report. a description that is detailed of Loans’ policies and procedures, changed in response to your Report, and of ORM’s parallel policies and procedures for collection and reporting of HMDA data is supplied confidentially to your Division in writing, contemporaneous using this Consent purchase (Policy Description).
  3. The firms shall remit a payment that is aggregate the total amount of two hundred and fifty thousand bucks ($250,000). The firms shall remit re re payment in complete within the quantity suggested above within seven (7) times of the execution of this Consent Order, payable to your “Commonwealth of Massachusetts,” because of the performed copy associated with Consent Order, towards the workplace regarding the Commissioner of Banks, 1000 Washington Street, tenth Floor, Boston, Massachusetts 02118.
  4. The companies each shall engage an independent auditing firm (Auditing Firm) to conduct an audit review of the continued implementation of the policies and procedures outlined in Paragraph 2 of this Consent Order and in the Policy Description and any corrective actions required of Quicken Loans by the Report within thirty (30) days of the effective date of this Consent Order. The Auditing Firm shall issue reports (Audit Reports) assessing each one of the ongoing companies’ compliance with such policies and procedures with regards to all of their yearly HMDA information filings for Calendar Years 2017 and 2018, in addition to compliance during each quarter during 2018. The very first Audit Report, addressing season 2017 in addition to very very first and 2nd quarters of 2018, will probably be granted by the Auditing company to your Division by August 31, 2018. The Audit Report within the quarter that is third of will be given by the Auditing company to your Division by November 30, 2018. The Audit Report since the quarter that is fourth of will be granted because of the Auditing Firm to your Division by February 28, 2019, and also the Audit Report covering season 2018 will be given because of the Auditing company into the Division by March 29, 2019.
  5. The companies each shall prior obtain the written approval through the Division about the range associated with audit before reviews are initiated . The Audits will be carried out by the Auditing Firm formerly decided because of the Division.
  6. absolutely Nothing in this Consent purchase, such as the modifications produced by Quicken Loans described above while the re payment established in paragraph 3, will probably be construed as an admission, concession, or contract that either or both for the Companies did not conform to any relevant legislation, guideline, legislation, or regulatory bulletin to that your organizations are topic and that is enforceable because of the Division.
  7. The firms each shall establish, implement, keep, and occasionally upgrade operating policies and training procedures to ensure all relevant workers involved with the collection and reporting of HMDA information possess a comprehensive comprehension of the policies and procedures described in Paragraph 2 for this Consent Order and into the Policy definition. Such training shall always make sure the appropriate execution and execution of all of the revised policies and procedures used pursuant to Paragraph 2 with this order that is consent. Such policies and training procedures must certanly be built to make sure that all training that is relevant to workers is tracked and documented.
  8. Regarding the thirtieth (30th) day following the end of every calendar quarter following date for this Consent purchase, starting with the calendar quarter closing June 30, 2018, the businesses each shall furnish written progress reports to your Division, which shall deal with the immediate following: a. A description regarding the kind, content, and types of any actions taken fully to address each area of this order that is consent the outcomes thereof; and b. Penned findings ready by each Company explaining management’s and staff persons’ adherence to your policies and procedures referred to in Paragraph 2 with this Consent purchase and when you look at the Policy explanation and also to relevant statutes, laws, and guidelines associated with the matters which are the main topic of this Consent purchase, along with a description of any functional modifications implemented during such quarter that are designed to enhance such Company’s conformity condition in Massachusetts while the outcomes thereof.
  9. The reporting requirement towards the Division referenced in Section 8 for this Consent purchase shall remain in place and shall never be amended or rescinded with no prior written modification, termination, or suspension for the relevant supply with this order that is consent the Commissioner. The Division may terminate this reporting requirement at its discretion upon the request of either Company.
  10. Absolutely absolutely Nothing in this Consent purchase shall be construed as allowing the firms to violate any legislation, guideline, legislation, or bulletin that is regulatory that your businesses are topic.
  11. Failure of an organization to conform to the regards to this Consent purchase shall represent grounds for permit suspension and/or revocation of such business, or other formal regulatory action against such Company pursuant to applicable conditions associated with the General Laws for the Commonwealth of Massachusetts.
  12. In consideration for this Consent purchase, topic to Paragraphs 10 and 11, the Division agrees not to ever pursue formal measures, in accordance with this matter, to suspend or revoke either Company’s mortgage company permit or even just simply just take some other formal or any other action against either business with regards to the issues included in this Consent purchase.
  13. This Consent purchase shall be effective instantly upon the date of the issuance.
  14. The conditions for this Consent purchase shall remain effective and enforceable except to your degree that, and until such time due to the fact Commissioner or perhaps a court of competent jurisdiction modifies, terminates, suspends, or sets apart any supply with this order that is consent.
  15. The organizations’ liberties and responsibilities under this Consent purchase are split from one another, and shall endure individually in the big event, among other possibilities, this 1 business shall no further be associated with one other or shall stop to be always a licensee.
  16. This Consent Order and also the Consent contract are the whole papers representing the quality for this matter. There aren’t any other agreements involving the Division and either of this organizations.