Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Judge orders injunction against HUD in Allied Home Mortgage case

Rare case between HUD and lender

Allied Home Mortgage Corporation was recently slapped with a mortgage fraud lawsuit filed by the U.S. Department of Housing and Urban Development (HUD) which immediately suspended Allied’s ability to originate Federal Housing Administration (FHA) insured mortgages which was the majority of their business.

Allied argued that they had not been found guilty of anything and HUD should not be able to shut them down without any legal findings, which a U.S. District Court judge in the Southern District of Texas in Houston agreed, ordering an injunction to HUD to allow Allied to resume FHA-backed loans.

Allegations against Allied

This injunction marks a major move in the mortgage world as Allied fights back against charges against them as well as direct allegations against their CEO Jim Hodge and EVP Jeanne Stell which seek damages and civil penalties under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). HUD alleges a decade of knowingly concealing misconduct in connection with their residential lending practices, namely originating loans from unapproved branch offices, violating FHA requirements.

The final outcome of HUD’s charges against Allied remains unseen, but in the meantime, Allied will be allowed to continue originating FHA-backed loans and their 723 employees will keep their jobs. It is unknown whether or not any misconduct occurred, but one thing is for sure – Allied is fighting back.

Advertisement. Scroll to continue reading.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Economic News

(BUSINESS NEWS) Ben Carson's initial appointment to HUD was controversial given his lack of experience in housing, but what is the pulse now?

Tech News

(TECH NEWS) There’s another new device that wants to help you keep your eyes on the road without missing a call, text, or navigation...

Housing News

After HUD announced changes to FHA short sales policies, they quickly recanted and postponed a ban on dual agency.

Housing News

FHA short sales are slow going and sometimes complex, with HUD making a substantial change to the process recently.


The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.