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As of Tuesday, HUD's Mortgage Review Board is suspending Houston-based ""Allied Home Mortgage Corporation"":http://www.alliedcorphome.com/ from originating or underwriting new mortgages insured by the ""Federal Housing Administration"":https://www.fha.com/ssl/ml/?PPCID=106&CID=grefbrand1&gclid=COG86YKklqwCFYxU7Aodd0-WOA (FHA), and ""Ginnie Mae"":http://www.ginniemae.gov/ is suspending the lender from issuing securities in its mortgage-backed securities program.
""HUD"":http://portal.hud.gov/portal/page/portal/HUD also suspended James C. Hodge, Allied's president and CEO and may debar Hodge and Jeanne L. Stell, EVP of Allied Home Mortgage.
[IMAGE] [COLUMN_BREAK]At the same time, the U.S. Attorney in Manhattan is pursuing a lawsuit against Allied, Hodge, and Stell for fraud and violations of FHA requirements.
HUD's Mortgage Review Board alleges that Allied violated several FHA requirements by originating loans at non-FHA-approved branches, submitting untrue information about where certain loans were originated, not making sure that the corporation paid all operating expenses at its FHA-approved branches, and failing to put in place an FHA/HUD-compliant quality control plan.
HUD also alleges the company submitted false certifications between 2006 and 2011 and allowed a suspended individual to hold a position as a principal, officer, and director.
""We will not tolerate mortgage lenders who play fast and loose with FHA's standards. These defendants demonstrated a pattern of recklessness and utter disregard for how we do business. They've harmed FHA, hurt homeowners, and now they'll be held to account for their actions,"" stated HUD's General Counsel Helen Kanovsky in a news conference.
Allied could not be reached for comment.
