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Allied Home Mortage

520LOAN - Allied Home Mortgage Corp Info

Testimonials and Company information for Terry Green, Mortgage Lender at Allied Home Mortgage Corp. Where to go to get a good mortgage.

Jury Awards $93 Million in Federal Fraud Case Against Allied Home Mortgage

A federal jury has ordered two Texas-based home mortgage companies and their chief executive to pay nearly $93 million for defrauding the government by issuing improper and risky home loans that later defaulted.

The companies, formerly known as Allied Home Mortgage Capital Corp. and Allied Home Mortgage Corp, and their founder, Jim C. Hodge, were the subject of July 2010 stories by ProPublica , which detailed a trail of alleged misconduct, lawsuits and government sanctions spanning at least 18 states and seven years. Borrowers said they’d been lied to by Allied employees, who in some cases had siphoned loan proceeds for personal gain. Some borrowers had lost their homes.

Despite the years of warnings, the federal government didn’t restrict Allied’s ability to issue mortgages until 2011, when prosecutors intervened in a pending whistleblower case and sued Hodge and both Allied companies in U.S. District Court in Manhattan. Simultaneously, the U.S. Department of Housing and Urban Development suspended Allied and Hodge from issuing loans backed by the Federal Housing Administration. Allied was also barred from issuing mortgage-backed securities through the Government National Mortgage Association (Ginnie Mae).

Breaking: $100 Million Verdict in Allied Capital False Claims Case

The case has special significance as it is one of only 2 False Claims Act cases against a lender related to the mortgage meltdown that went to trial and verdict. The other was the well-chronicled HUSL - Bank of America case. All others were settled in some of the largest settlement amounts in U.S. history.

The False Claims aspects of the case relate to Allied’s “shadow branches”. HUD requires banks, mortgage companies, lenders…to have licensed offices, in effect something at risk themselves in the form of salaries, offices rents and other overhead as a government approved loan originator and therefore a motivator for good business practices.

What was happening in the time period prior to the national mortgage meltdown is a number of banks and mortgage companies including Allied were opening Shadow Branches, sometimes called Net Branches. In these circumstances the lender would have an independent party open an office at their own expense with no risk to the lender.

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to America's problems?


How, exactly, will this help America?

I think he is full of sh*t!

Everytime I hear his goofy mulatto a$$ speak, with his pausing and choosing his words while swinging his head from side to side like a monkey it makes laugh!