Allied Pending Lawsuits

Bloomberg Businessweek has just released an article stating that the founder of Allied Home Mortgage, James C. Hodge, is suing HUD for suspending their FHA loan origination abilities. Allied will be taking a great hit with this suspension as about 70 percent of their business is done through FHA lending. What is even worse is that this suspension will cause Allied's warehouse lines to be terminated and this will completely drain Allied as a company. Currently, there is also a case where the U.S. District court is suing Allied for using corrupt lending practices. This case was put into action the same day that HUD suspended Allied's FHA originating. Hodges is asking the Judge to put a halt on the HUD suspension until the case with the U.S. District Court is resolved.