Although the Department and Housing and Urban Development suspended Allied Home’s FHA lending privileges on November 1st, a federal judge has ruled that Allied’s privileges must be reinstated.  The United States elected to revoke Allied’s FHA-backed mortgage origination privileges when it filed a case against Allied alleging that the company had repeatedly lied about its compliance with FHA mortgage requirements.  Approximately one-third of mortgages originated by Allied over the last ten years have defaulted, leaving the government to foot the bill.

U.S. District Judge Melinda Harmon granted CEO James Hodge’s request for a temporary restraining order, stating that “The potential destruction of plaintiffs’ business outweighs any harm that would be suffered by the government before the issues can be litigated.” According to the government, though, “enough is enough.”

Read the entire article, “Allied Home Mortgage’s FHA Privileges Reinstated by Judge”