TO:
Pennsylvania Agents
FROM:
Underwriting Department
DATE:
November 16, 2011
RE:
Allied Home Mortgage Corporation.
On November 1, 2011
HUD issued a press release suspending Allied Home
Mortgage Corporation from originating and
underwriting new mortgages insured by the Federal
Housing Administrator. In addition, the Government
National Mortgage Association has also suspended the
company from issuing any Mortgage backed
Securities. The
press release, a copy of which is
attached, cites numerous violations of HUD/FHA
requirements.
As a result of these
announcements, Old Republic Title agents should not
close any loans involving Allied Home Mortgage
Corporation
unless they have good funds in their escrow account
for the loan. For purposes of this
Alert the term "good funds" should be construed to
mean that the funds for the loan have actually been
received by the bank and have been credited to the
appropriate escrow account. You should also
contact your bank to ensure that no wired funds can
be reversed without prior notification to you.
Should you have any questions, please contact our
underwriting counsel:
Steven
Gratman;
Bill Corrigan;
Paula Mack
or
Dwight Edwards.
This Alert has been published for the sole purpose
of meeting the Company’s predetermined underwriting
criteria and should in no way be construed as
slanderous or defamatory material against any of the
parties named herein.
