Quicken Loans
Encyclopedia
Quicken Loans Inc., headquartered in Detroit, Michigan
, is the largest online mortgage lender and the 5th largest retail mortgage lender overall in the USA. The company consists of the QuickenLoans.com online lending site, the Rock Financial brand in southeast Michigan, One Reverse Mortgage, based in San Diego, California, and Title Source, a mortgage settlement service provider. In 2010, Quicken Loans processed approximately $29 billion in residential mortgage loans.
The company employs about 3,700 people and is listed as one of the Top 30 Best Places to Work in America by Fortune magazine, a notable mention it has held for several years.
, their childhood friend Lindsay Gross, and Ron Berman. Rock Financial soon became one of the largest independent mortgage companies in the country. In May 1998, Gilbert took Rock Financial public, launching a successful IPO underwritten by Bear Stearns
and Prudential Securities
.
In December 1999, Intuit Inc.
(makers of QuickBooks
, TurboTax
, and Quicken
) purchased Rock Financial for a sum of $532M. The company was renamed Quicken Loans. In June 2002, Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for just $64M.
Since 2009, Quicken has leased office space in the Compuware building at Campus Martius Park
in Detroit, while it completes its move to Downtown Detroit
.
Quicken Loans has not had the massive layoffs of other financial companies during recessions. The company saw a small drop in employment levels following the 2008 finanical crisis. According to the The Detroit News
, Quicken Loans did not hire new staff in September or October 2007 for their Michigan offices, but continue to hire for its Cleveland and Scottsdale, Ariz., offices. Then on June 19, 2008, the company laid off 250 people "across the board" at locations in Michigan, Ohio, and Arizona. According to a company spokeswoman, the layoffs were caused by the slumping economy and improved efficiency.
In August 2007 the entire mortgage industry faced a crisis in obtaining new credit from banking institutions and hedge funds. In response to that Quicken Loans stopped doing all:
In 2004, Quicken Loans Inc. became a defendant in a class action lawsuit. This was filed against the company on behalf of employees who worked as loan consultants for any Quicken office within the past three years. The claimants alleged that Quicken violated the Fair Labor Act for failing to pay the plaintiffs overtime for working beyond a 40-hour work week. Quicken Loans denied these claims, and said it is not aware of any such violations of the Fair Labor Act. On March 17, 2011, a federal jury in downtown Detroit found in favor of Quicken Loans, ending the seven-year old lawsuit. The decision means that Quicken Loans is not responsible for overtime payments to the plaintiffs.
Michigan
Michigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
, is the largest online mortgage lender and the 5th largest retail mortgage lender overall in the USA. The company consists of the QuickenLoans.com online lending site, the Rock Financial brand in southeast Michigan, One Reverse Mortgage, based in San Diego, California, and Title Source, a mortgage settlement service provider. In 2010, Quicken Loans processed approximately $29 billion in residential mortgage loans.
The company employs about 3,700 people and is listed as one of the Top 30 Best Places to Work in America by Fortune magazine, a notable mention it has held for several years.
History
Quicken Loans, originally Rock Financial Corporation, was founded in 1985 by Dan Gilbert along with his younger brother, film producer Gary GilbertGary Gilbert
Gary Gilbert is an Oscar nominated producer and the founder and president of Gilbert Films, a motion picture production and financing company based in Los Angeles, California. Gilbert financed and produced the 2004 feature film Garden State starring Zach Braff and Natalie Portman. In 2005 Gilbert...
, their childhood friend Lindsay Gross, and Ron Berman. Rock Financial soon became one of the largest independent mortgage companies in the country. In May 1998, Gilbert took Rock Financial public, launching a successful IPO underwritten by Bear Stearns
Bear Stearns
The Bear Stearns Companies, Inc. based in New York City, was a global investment bank and securities trading and brokerage, until its sale to JPMorgan Chase in 2008 during the global financial crisis and recession...
and Prudential Securities
Prudential Securities
Prudential Securities was the financial services arm of the insurer, Prudential Financial. In 2003, Prudential Securities was merged into Wachovia Securities, a division of Wachovia Bank.-History:...
.
In December 1999, Intuit Inc.
Intuit Inc.
Intuit Inc. is an American software company that develops financial and tax preparation software and related services for small businesses, accountants and individuals...
(makers of QuickBooks
QuickBooks
QuickBooks is a line of business accounting software developed and marketed by Intuit.-History:Intuit was founded in 1983 by Scott Cook and Tom Proulx in Mountain View, California, USA...
, TurboTax
TurboTax
TurboTax is an American tax preparation software package developed by Michael A. Chipman of Chipsoft in the mid-1980s. TurboTax became an Intuit product as a result of the 1993 acquisition of its creator, San Diego-based Chipsoft. Chipsoft, now known as Intuit Consumer Tax Group, is still based in...
, and Quicken
Quicken
Quicken is a personal finance management tool developed by Intuit, Inc.Quicken runs on Windows and Macintosh systems. Previous versions ran on DOS. An online version is also available. The last version of Quicken for Macintosh computers was Quicken Essentials for Mac released in February 2010...
) purchased Rock Financial for a sum of $532M. The company was renamed Quicken Loans. In June 2002, Gilbert led a small group of private investors in purchasing the Quicken Loans subsidiary back from Intuit for just $64M.
Corporate governance
On November 12, 2007, Quicken Loans founder Dan Gilbert announced a development agreement with the city to move the company headquarters to downtown Detroit, consolidating suburban offices. The construction sites reserved for development by the agreement included the location of the former Statler on Grand Circus Park and the former Hudson's location.Since 2009, Quicken has leased office space in the Compuware building at Campus Martius Park
Campus Martius Park
Campus Martius Park is a re-established park in downtown Detroit, Michigan. After the fire of 1805, Campus Martius was the focal point of judge Augustus Woodward's plans to rebuild the city. It is where the "point of origin" of Detroit's coordinate system is located...
in Detroit, while it completes its move to Downtown Detroit
Downtown Detroit
Downtown Detroit is the central business district and a residential area of Detroit, Michigan, United States. Downtown is bordered by the Lodge Freeway to the west, the Fisher Freeway to the north, Interstate 375 to the east, and the Detroit River to the south.Downtown contains much historic...
.
Locations
- Farmington Hills, MI
- Livonia, MI
- Southfield, MI
- Detroit, MIMichiganMichigan is a U.S. state located in the Great Lakes Region of the United States of America. The name Michigan is the French form of the Ojibwa word mishigamaa, meaning "large water" or "large lake"....
- Cleveland, OH
- Scottsdale, AZ
Recent news
In the Spring of 2008 Rock Holdings entered the Reverse Mortgage market with the acquisition of One Reverse Mortgage in Southern California.Quicken Loans has not had the massive layoffs of other financial companies during recessions. The company saw a small drop in employment levels following the 2008 finanical crisis. According to the The Detroit News
The Detroit News
The Detroit News is one of the two major newspapers in the U.S. city of Detroit, Michigan. The paper began in 1873, when it rented space in the rival Free Press's building. The News absorbed the Detroit Tribune on February 1, 1919, the Detroit Journal on July 21, 1922, and on November 7, 1960,...
, Quicken Loans did not hire new staff in September or October 2007 for their Michigan offices, but continue to hire for its Cleveland and Scottsdale, Ariz., offices. Then on June 19, 2008, the company laid off 250 people "across the board" at locations in Michigan, Ohio, and Arizona. According to a company spokeswoman, the layoffs were caused by the slumping economy and improved efficiency.
In August 2007 the entire mortgage industry faced a crisis in obtaining new credit from banking institutions and hedge funds. In response to that Quicken Loans stopped doing all:
- Second mortgages
- Home equity lines of credit (HELOCHELOCA home equity line of credit is a loan in which the lender agrees to lend a maximum amount within an agreed period , where the collateral is the borrower's equity in his/her house...
) - Alt-A products
- Deferred interest loans
In 2004, Quicken Loans Inc. became a defendant in a class action lawsuit. This was filed against the company on behalf of employees who worked as loan consultants for any Quicken office within the past three years. The claimants alleged that Quicken violated the Fair Labor Act for failing to pay the plaintiffs overtime for working beyond a 40-hour work week. Quicken Loans denied these claims, and said it is not aware of any such violations of the Fair Labor Act. On March 17, 2011, a federal jury in downtown Detroit found in favor of Quicken Loans, ending the seven-year old lawsuit. The decision means that Quicken Loans is not responsible for overtime payments to the plaintiffs.