Citing “potential destruction of…business,” a U.S. district judge has ruled that Allied Home Mortgage Corporation can resume originating and underwriting loans, overruling the department of housing and urban development (HUD)’s decision to suspend the company while allegations of fraud and FHA violations are investigated[1]. FHA-insured mortgages make up about 70 percent of Allied’s business, which led the company to file a countersuit calling the FHA investigation and allegations “arbitrary and capricious.” The U.S. attorney who filed the suit claims that FHA has already paid out $834 million on fraudulently-originated Allied mortgages and that the company made the loans for over a decade.
Allied has called the entire suit a “half-baked attempt to put another mortgage broker out of business so HUD can say it is cleaning up the industry”[2]. Do you agree or did the judge make the right decision by overruling the suspension?
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[1] http://www.dsnews.com/articles/judge-allows-allied-to-resume-issuing-fha-insured-loans-2011-11-16
[2] http://www.businessweek.com/news/2011-11-16/allied-home-mortgage-s-fha-privileges-reinstated-by-judge.html
Either the judge has lost his m mind or has been bought off.
I believe you should be innocent until proven guilty so alleged allegations should not be able to disrupt a companies business. On the other hand if they ate proven guilty they should have the book and then some thrown at them. I do believe the banks are running around lawless at this time.