According to Reuters, the former Allied Home Mortgage Capital Corp.’s attempt to dismiss a lawsuit accusing it of defrauding the U.S. government into insuring thousands of risky mortgages was rejected by a judge. This means the case is moving forward. Per Reuters:

In decisions made public on Tuesday, U.S. District Judge George Hanks in Houston said Allied, now known as Americus Mortgage Corp, should face claims it misled the U.S. Department of Housing and Urban Development into believing its loans qualified for insurance by HUD's Federal Housing Administration.

The judge also ruled that the government could pursue similar civil claims against Allied's chief executive, Jim Hodge, and compliance director Jeanne Stell.

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