Guaranteed Rate Statement on Department of Justice Settlement
Guaranteed Rate, Inc. and the Department of Justice (DOJ) have reached a resolution on a matter involving a limited number of loans. We worked with the DOJ to identify some mistakes and made the necessary improvements to our operations.
Guaranteed Rate is committed to doing the right thing and serving the needs of our customers. We come from a good place. We always have. Mortgage lending is a complicated and highly regulated business, and government lending guidelines are especially complex. In this matter, the DOJ helped us identify some issues that had already been corrected or were immediately corrected once identified. At no time did any audit review highlight any of these issues previously. We never intentionally violated any guidelines, that’s just not who we are.
At the same time, the statement from the DOJ feels dangerous to us. We have always operated with a customer-first approach, and a commitment to doing the right thing by adhering to all guidelines and regulations. We believe most of our peers in the industry do the same. Scenarios just like these have driven many lenders away from operating in this space, leaving the rest of us operating from a position of fear. This results in fewer options for customers, not more.
Our relationship with HUD has always been positive, but we want to build a stronger relationship with their team, as we want to be an even better partner. We’re grateful for the cooperative process we engaged in together to resolve this matter.
We appreciate all that HUD and VA are doing to enable access to affordable housing for so many Americans, especially during challenging times like these. We look forward to collaborating with them in the future to continue to advance the industry and do what’s best for customers. We are proud of our strong relationship with our borrowers, investors and government partners. This experience has made us better, setting us up for an even stronger and brighter future.
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