Feds Sue Mortgage Broker, Alleging Lending Fraud
By THE ASSOCIATED PRESS
NEW YORK (AP) — The federal government sued one of the nation's largest privately held mortgage brokers on Tuesday, saying its decade-long fraudulent lending practices cost the government hundreds of millions of dollars and forced thousands of American homeowners to lose their homes.
The lawsuit in U.S. District Court in Manhattan sought unspecified damages and civil penalties and named as defendants Houston-based Allied Home Mortgage Corp., 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 immediate comment.
At a news conference, U.S. Attorney Preet Bharara said Allied had carried out its fraud through its authority to originate mortgage loans insured by the U.S. Department of Housing and Urban Development, or HUD.
(More here.)
NEW YORK (AP) — The federal government sued one of the nation's largest privately held mortgage brokers on Tuesday, saying its decade-long fraudulent lending practices cost the government hundreds of millions of dollars and forced thousands of American homeowners to lose their homes.
The lawsuit in U.S. District Court in Manhattan sought unspecified damages and civil penalties and named as defendants Houston-based Allied Home Mortgage Corp., 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 immediate comment.
At a news conference, U.S. Attorney Preet Bharara said Allied had carried out its fraud through its authority to originate mortgage loans insured by the U.S. Department of Housing and Urban Development, or HUD.
(More here.)
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