NEW YORK Nov 3 A home mortgage company and its
chief executive -- facing civil fraud charges by the U.S.
government -- asked a judge to declare that their suspensions
by the federal housing agency failed to provide them with due
process of law.
Allied Home Mortgage, CEO James Hodge and another top
executive were sued on Tuesday by federal prosecutors in New
York, who said they ran a decades-long fraud that cost the
government hundreds of millions of dollars on risky home
On Thursday, U.S. District Court Judge Melinda Harmon in
Houston, Texas did not immediately rule on an injunction.
"The court finds that it needs more information to make a
decision on the request for injunctive relief in this case,"
Harmon said in a written order. She scheduled a hearing for
The U.S. Department of Housing and Urban Development (HUD)
suspended Allied's origination and underwriting approval and
Hodge from participating in any Federal Housing
In their own lawsuit in U.S. District Court in Houston on
Wednesday, Allied and Hodge described the decision as
"arbitrary and capricious."
In an email on Thursday night, HUD spokesman Brian Sullivan
declined to comment on Hodge's legal action.
The case is Allied Home Mortgage Corp v Shaun Donovan,
Secretary of the United States Department of Housing and Urban
Development et al, U.S. District Court, Southern District of
Texas, No. 11-03864.