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84 MICHIGAN Quicken Loans, DOJ Take First Step in Legal Battle e battle between Detroit-based Quicken Loans and the U.S. Department of Justice (DOJ) began mid-February when attorneys for the two parties appeared before District Judge Mark A. Goldsmith in a Detroit courtroom. e DOJ filed suit against Quicken, the second-largest retail mortgage lender in the country in April 2015, alleging FHA lending violations—specifically, that Quicken inflated appraisals, approved borrowers with poor credit and insufficient income, gave speed bonuses to underwriters, and failed to disclose loan problems that cost millions in government dollars. e suit came on the back of Quicken's own filing, which claimed the DOJ and the Department of Housing and Urban Development tried to strong-arm the lender into paying steep fees and admitting falsities. A federal judge dismissed the case in January 2016, but Quicken's executives vowed to continue the fight. "is temporary procedural setback does not deter Quicken Loans from exposing the truth about the DOJ's egregious attempts to coerce unjust 'settlements' from its victims, including Quicken Loans, but using the guise of the heavy hand and power of the federal government in doing so," Quicken's CEO Bill Emerson said in a press release. e mid-February court appearance marked the first step in what could very likely be a long and grueling legal process. e two parties met before Judge Goldsmith to address Quicken's request for dismissal. If dismissal is not granted, both sides will discuss subsequent court dates leading up to the official trial on April 11, 2019. If Goldsmith does not dismiss the DOJ's charge, don't count on any settlements. Dan Gilbert, Quicken Chairman and Founder, told the Detroit News the lender isn't backing down. "e baseless and groundless government lawsuit has no merit," Gilbert said. "ere is nothing in the DOJ's trumped-up, distorted claims worthy of prompting or causing Quicken Loans to change any of our underwriting practices." The LOGS Group, ARMA Acquisition Announce New Platform e LOGS Group, LLC, a national provider of law firm practice management solutions, has announced that it has joined Farmington Hills, Michigan-based ARMA Acquisition, LLC, to form the largest practice management services provider organization in the default legal services marketplace. e LOGS Group was previously owned by the LOGS Network. e new Employee Stock Ownership Plan organization, called A360, Inc., will operate under four brands and will provide stream- lined solutions to the mortgage and financial services industries. A360 will encompass a variety of features, including complete legal practice management services provided by Firm Solutions, software solutions and full IT support services provided by assure360, national property reports, title search and title data solutions provided by C2C Title Data Services, and record retrieval and court reporting services provided by Blue Ribbon Legal, according to a report. Established by Gerry Shapiro and David Kreisman in 1996, e LOGS Group was cre- ated to centralize the administrative functions of their national law firm and title network. "Many mortgage default servicing law firms are facing challenging market dynamics as volumes contract while administrative de- mands and associated costs continue to rise," said Scott Brinkley, CEO of A360. "e practice management and technol- ogy solutions we provide will enable law firms across the country to direct their focus on delivering exceptional legal services to their clients while reducing internal operating expenses; it's a win-win proposition for all parties involved," Brinkley stated. ILLINOIS Settlement Underscores Significance of The Fair Housing Act Amendment Illinois' Alpine Bank & Trust and the Department of Housing and Urban Develop- ment (HUD) reached an agreement last month that would drop allegations of what HOPE Fair Housing Center of Wheaton, Illinois claims were lender practices that excluded lending and mortgage business services in predominantly minority neighborhoods. According to their website, the HOPE Fair Housing Center is "dedicated to eliminating housing discrimination and segregation because of race, color, religion, national origin, sex, dis- ability, familial status, or any other characteris- tics protected under state or local laws." In the complaint filed on July 7, 2016, Alpine Bank was accused of violating e Fair Housing Act Amendment of 1988, which out- lines that no applicant should be discriminated on the basis of race and national origin. It was alleged the bank avoided African American and Hispanic neighborhoods, making their products and potential consumer-lender relationships nonexistent. e complaint also states that the lender provided more thorough information of services and options to Anglo consumers than Latino or African American customers. e voluntary agreement states that the "respondent denies all of the allegation in the complaint and admits no wrongdoing, but agrees to settle the claims in the underlying action by entering into this Conciliation Agree- ment. Respondent asserts that Alpine was the leading residential mortgage lender in majority- minority areas of the Rockford MSA over the time period at issue." Among several items, the settlement will include a $1 million dollar loan program to reach minority borrowers in the Rockford, Illinois metro region, community outreach programs that include seminars and credit/homeowner- ship educative programs, and a payment to HOPE for $75,000. As part of its community outreach efforts, in January Alpine hired a Community Outreach Officer dedicated to "identifying and imple- menting targeted community outreach and investment opportunities in minority areas." Michigan had 30,000 completed foreclosures, which was the second highest number of completed foreclosures in the 12 months ending in December 2016 according to CoreLogic's December 2016 National Foreclosure Report. KNOW THIS

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