Quicken Loans Inc. has lost a class action in which it was accused of suggesting values to appraisals. But the mortgage giant expects to be vindicated on appeal.
An attorney representing the plaintiffs claims that appraised values on loans made by the Detroit-based lender were in excess of the homes actual value.
Such a situation leaves borrowers in a negative-equity position, according to the attorney, which could be disastrous when the borrower wants to sell the property.
Source: Mortgage Daily