The federal government has sued one of the nation’s largest privately held mortgage brokers in New York. It says the company committed lending fraud as the government was paying $834 million in insurance claims.
The lawsuit was filed Tuesday in federal court in Manhattan against Allied Home Mortgage Capital Corp.
It seeks unspecified damages and civil penalties.
The lawsuit says a decade of “concealed misconduct” by Allied resulted in tens of thousands of defaulted loans and forced thousands of American homeowners to face eviction.
The suit says the fraud cost the government hundreds of millions of dollars in losses.
A message left with the company seeking comment was not immediately returned.
Was this article valuable?
Here are more articles you may enjoy.
The Big Dog Is Off the Tech Porch: State Farm as ‘Next Gen Good Neighbor’ 
Balancing Technology and Expertise in Property Insurance Claims 
Adani Enterprises Reaches $275 Million Settlement With Treasury 
Iran Starts Bitcoin-Backed Ship Insurance for Hormuz Strait 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.