Philadelphia Mortgage Lender Sued By Federal Government
Philadelphia Mortgage Lender Sued By Federal Government
Allied Mortgage, a national lender with a presence in our marketplace is being sued by the Federal Government. At this time HUD has stopped insuring loans for Allied. Please let your Philadelphia real estate agents know immediately if Allied Mortgage is involved directly or in a domino effect on one of their transactions. Rumors are swirling in the industry of closings recently with Allied where the buyer was a federal reference number but no money was there at closing.
(UPDATE: just to be clear, the suit is against Allied Home Mortgage Capital from Texas NOT Allied Mortgage Group, Inc., another lender doing business in Philadelphia with a similar name)
Here’s more from the New York Times:
The federal government sued one of the nation’s largest privately held mortgage brokers on Tuesday, saying its decade-long lending practices amounted to fraud and cost the government hundreds of millions of dollars and forced thousands of American homeowners to lose their homes. The lawsuit in United States District Court in Manhattan sought unspecified damages and civil penalties and named as defendants Allied Home Mortgage Corporation; its founder, Jim Hodge; and Jeanne Stell, the company’s executive vice president and director of compliance. Joe James, a company spokesman, said he was aware of the lawsuit but had not yet seen it. He declined further comment. At a news conference, Preet Bharara, the United States attorney based in Manhattan, said Allied had carried out its fraud through its authority to originate mortgage loans insured by the Department of Housing and Urban Development, or HUD.
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Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog
Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
610.636.4364 Cellular
888.308.1148 Fax
[email protected]
www.CenterCityTeam.com
