Judge Triples Penalty Against Allied

Sep 21, 2017

A federal judge tripled the penalty enacted against two Texas-based mortgage companies, Allied Home Mortgage Corp. and Allied Home Mortgage Capital Corp., and their CEO Jim Hodge for violating the False Claims Act.

According to a Reuters report, a jury last November determined that the companies and their chief executive should pay the federal government approximately $93 million after being found liable of falsely certifying to the Federal Housing Administration the state of problematic mortgages submitted for the agency’s insurance. However, U.S. District Judge George Hanks in Houston upped the penalty to $296.3 million, citing a provision in the False Claims Act that mandated a tripling of damages. Hodge will be required to pay $25.3 million and the companies will cover the rest of the sum.

The federal government first brought its lawsuit against the companies and Hodge following a whistleblower’s complaint back in November of 2011. Just a few weeks later, a Houston judge ordered an injunction against HUD to allow Allied Home Mortgage Corporation branches to resume originating FHA loans.

Allied Home Mortgage has since been renamed AllQuest Home Mortgage Corp. and Allied Home Mortgage Capital was renamed Americus Mortgage Corp.

About the author

Phil Hall

Link copied

Published

Sep 21, 2017

Analysis and Data

Mortgage Rates Surpass 7% For First Time This Year

Freddie Mac reported the 30-year fixed-rate mortgage averaged 7.10%.

Freddie Mac today released its Primary Mortgage Market Survey, revealing the 30-year fixed-rate mortgage (FRM) averaged 7.10%, breaching the 7% threshold for the first time this year. “The 30-year fixed-rate mortgage surpassed 7% for the first time this year, jumping from...

Analysis and Data

Existing Home Sales Decline By 4.3% In March

Northeast the only region to see an uptick in sales over prior month, per a new report from the National Association of Realtors

Fewer people bought homes this March than the month before and during March 2023, a new report from the National Association of Realtors (NAR) reveals. Total existing-home sales receded 4.3% from February to a seasonally adjusted annual rate of 4.19 million in March. Year...