Feds Sue Allied Home Mortgage Over Alleged Fraud

Law360, New York (November 1, 2011, 4:03 PM EDT) -- U.S. prosecutors sued Allied Home Mortgage Capital Corp., one of the largest mortgage brokers in the nation, on Tuesday for alleged lending fraud that left federal mortgage insurers to cover $834 million in defaulted loans.

Allied and its underwriting arm, Allied Home Mortgage Corp., allegedly violated a bevy of rules meant to make sure government-insured mortgages to nontraditional borrowers were provided prudently, U.S. Attorney for the Southern District of New York Preet Bharara said in a civil lawsuit.

The complaint, a government intervention in a whistleblower...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.