HUD Announces Immediate Suspension of Allied Home Mortgage Corporation
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UPDATED: Nov 15, 2011
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The U.S. Department of Housing and Urban Development (HUD) has suspended this month Allied Home Mortgage Corporation from underwriting and originating new home mortgages insured by the Federal Housing Administration (FHA).
Allied is alleged to have been originating and concealing loans from unapproved branch offices.
In addition to suspending the company, HUD has also suggested to debar the company’s president, James C. Hodge, and the company’s vice president, Jeanne L. Stell.
“We will not tolerate mortgage lenders who play fast and loose with FHA’s standards,” said HUD’s General Counsel Helen Kanovsky in a statement.
HUD cited several violations including using unqualified and inadequate staff members, bypassing FHA requirements and knowingly submitting false information to the FHA.
This suspension was brought on just as the U.S. Attorney in Manhattan finished filing a lawsuit against Allied Home Mortgage Company for multiple charges of mortgage fraud in addition to the FHA violations.
Kanovsky finished her condemnation by stating, “These defendants demonstrated a pattern of recklessness and utter disregard for how [the FHA does] business. They’ve harmed the FHA, hurt homeowners, and now they’ll be held to account for their actions.”
Allied Home Mortgage Company’s website has been made temporarily unavailable and instructs those holding Allied loans to call its loan inquiry desk with any questions they may have.