DETROIT (AP) - A judge has refused to dismiss much of a lawsuit against Quicken Loans, which is accused of fraudulently sticking the government with bad mortgages.
Detroit federal Judge Mark Goldsmith says the case should be narrowed to claims made from spring 2009 through 2011. But the government prevailed Thursday in most of the 52-page decision.
Quicken is accused of cutting corners when verifying the income of certain borrowers. Quicken also is accused of seeking improper appraisals on homes so it could make a larger mortgage.
The loans were insured by the Federal Housing Administration, which paid Quicken if a borrower defaulted.
The Detroit-based company has described the lawsuit as "abusive" and the investigation as a "witch hunt." Quicken's founder is Dan Gilbert, a key player in redeveloping downtown Detroit.
Gilbert also owns the National Basketball Association's Cleveland Cavaliers.