Quicken Loans is proud of its lending to Detroit residents and its role in helping our neighbors achieve homeownership or improve their financial position. The company has assisted more than 4,000 Detroiters with their home lending needs in the last 10 years.
The facts clearly demonstrate Quicken Loans’ track record of responsible lending:
- The average credit profile of Quicken Loans’ Detroit clients is very strong:
- FICO Credit Score – 678
- Debt-to-income ratio – 23.11%
- Clients had, on average, 22 percent equity in their home
- Average principal and interest payment – $620 per month
- Average savings when homeowners refinanced – $300-$400 per month
- 100% of the loans were conforming products
- The facts prove, the mortgages Quicken Loans wrote were to qualified homeowners with good credit profiles.
- By lowering the average client’s mortgage by $311 a month, Quicken Loans improved the cash flow of its clients.
- Nearly 40 percent of Detroit clients used their mortgage refinance to consolidate debt, while still saving hundreds on their monthly mortgage payments.
- Despite solid credit profiles and prudent underwriting guidelines, no mortgage can be future-proof or foresee the impending economic crisis that impacted Detroit immensely.
- Of all the foreclosures in Detroit between 2005 and 2014, less than 3% of those were related in any way to Quicken Loans.
- Less than 1% (0.85%) of all mortgages originated in Detroit over the last 10 years resulted in a Quicken Loans foreclosure.
- Quicken Loans has the 2nd LOWEST foreclosure percentage of any lender with an average of 25 closed loans per month or more from 2005 to 2014.
- Quicken Loans has zero incentive to originate failed mortgages to Detroiters.
The Real Housing Crisis in Detroit:
- The real housing crisis in Detroit is the absurd structure of property taxes in the City of Detroit.
- Not only is Detroit’s millage rate the highest of all major cities, the city has not had a comprehensive reassessment in decades. Many homes are currently assessed as much as three times their actual market value.
- For every Detroit home that is foreclosed upon due to an unpaid mortgage, two are foreclosed for unpaid taxes.
- There are a total of 180,000 properties which were foreclosed, issued foreclosure notices, or in the foreclosure pipeline in the city of Detroit from 2012 to 2014.