Strictly Orthodox Jews can once again take out mortgages from US lender Quicken Loans, after the firm resolved a halachic problem.
Agudath Israel of America, which represents US Charedim, issued a legal ruling in April prohibiting Jews from taking out loans with Quicken Loans because the company is majority-owned by Jews.
Under Jewish law, Jews are forbidden from charging interest to other Jews.
Quicken Loans has now announced that it has circumvented the issue by adopting heter iska – a technicality which means it officially sells “co-investments”, rather than loans.
Under the rule, borrowers become “business partners” with lenders, the Jewish Telegraphic Agency reports.
Agudath Israel of America said: “On behalf of Torah Jewry across America, we thank Quicken Loans for its sensitivity and devotion to the needs of the community.
“The company has exhibited true leadership in taking this bold move quickly and efficiently, trailblazing a clear path forward for the observant Jewish community. We are grateful for this and we express our deepest appreciation.”
Rabbi Avi Shafran, a spokesman for Agudath Israel of America, added that the heter iska does not retroactively reclassify existing loans, however.
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