Judge Lifts HUD Ban On Allied's Mortgage-Writing Powers

Law360, New York (November 15, 2011, 8:02 PM EST) -- A Texas federal judge on Tuesday stopped the U.S. Department of Housing and Urban Development from suspending Allied Home Mortgage Corp.'s ability to write Federal Housing Authority-insured home loans while a False Claims Act suit against Allied in New York is pending.

“The potential destruction of plaintiffs’ business outweighs any harm that would be suffered by the government before the issues can be litigated in the New York qui tam action,” U.S. District Judge Melinda Harmon said in an order granting Allied's request for a preliminary...
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