by Brian Mahany
Jim Hodge and his company, Allied Home Mortgage Corporation, are no strangers to controversy. Lawsuits by lenders, arbitration claims by former branch managers, enforcement actions by at least 9 states, HUD and FHA complaints and one of the highest default rates on their mortgages in the country to name just a few of their problems. But nothing prepared Allied for twin class action complaints working their way through the system. The first, filed April 11th, is just the tip of the iceberg.
Regulators are often content with a bit of publicity and some hefty fines. To Allied and Jim Hodge, that’s just a cost of doing business. The newest round of class actions could be the straw that breaks the camel’s back and finally forces Allied to clean up its act (or go under), however. Together the suits are likely to seek more than $100 million; an amount that is a lot even for Allied.
What does this mean for former branch managers and customers who feel like they were defrauded by Allied? It means don’t wait! This time, there may not be enough money to pay all claims. The best way to protect yourself is by suing early.
Some branch managers may wish to participate in one of the anticipated class actions suits but it is unlikely that a “one-size-fits-all” approach will be the best option for most managers. There simply were too many employment contract variations to try to bring all claims within the same lawsuit. With most of these branch manager cases being taken on a contingent fee basis, it’s not expensive to pursue your own individual action.
If you think you were ripped off by Allied or have information that may help other brokers and customers, call us. All inquiries are kept in confidence.
Mahany & Ertl is a leading fraud and fraud recovery lawfirm with offices in Milwaukee, Wisconsin; Detroit, Michigan and Portland, Maine. Attorney Brian Mahany can be reached by email at Attorney Joe Bird – our primary lawyer working almost exclusively on Allied cases- can be reached at (248) 909-4235 (direct dial) or by email at