Allied Says HUD Can't Halt Its Mortgage-Writing Powers

Law360, New York (November 3, 2011, 10:41 PM EDT) -- After the U.S. Department of Housing and Urban Development suspended its ability to write Federal Housing Authority-insured home loans, Allied Home Mortgage Corp. fired back at the agency Wednesday in Texas federal court, claiming HUD abused its powers.

HUD informed Allied of the suspension in a letter Tuesday, supposedly based on its authority under FHA statutes, according to the complaint.

But Allied and CEO Jim Hodge say HUD's objective is not actually to exercise its statutory authority, since the letter says the suspension is dependent on...
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