CitiMortgage Wins $1M From Allied Over Defective Loans

Law360, New York (October 25, 2012, 2:31 PM EDT) -- A Missouri federal judge granted summary judgment Wednesday to CitiMortgage Inc. in its suit alleging Allied Mortgage Group sold it more than $1 million in defective loans and refused to repurchase them, finding Allied had breached its contract with Citi.

CitiMortgage sued Allied in 2010 over nine particular loans, out of about 2,560 loans worth $316 million, that did not conform to the terms of the parties' bulk loan purchase agreement in connection with CitiMortgage's Loan Purchasing Program. Through that program, the company transfers some loans...
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