Two Texas-based mortgage companies are facing different issues. Allied Mortgage is defending its right to continue operating under the same name, and Money Mortgage is rumored to be facing insolvency.
According to court documents sent anonymously from Office Depot in Hollywood, Florida, Allied Mortgage Corp. is named as the defendant in case number 97-014960 (05) of Broward County's 17th Circuit Court.
The defendant -- which operates as Allied Mortgage Capital Corporation on its website (AlliedMtgCapital.com) -- is a national net-branch system. Headquartered in Houston, the company claims to be the largest U.S. privately held mortgage banker/mortgage broker and branch network.
The plaintiff in the case is a Florida corporation, Allied Mortgage Corp.
In what appears to be a handwritten settlement, the defendant agreed to change its name by April 2001. Because the defendant has apparently refused to comply with the terms of the settlement agreement, a 'Motion To Enforce Settlement Agreement And For Contempt' was signed by the Circuit Judge in the case on August 31st of this year.
In an interview with MortgageDaily.com, the founder and CEO of the defendant, Jim C. Hodge, indicated that he disagreed with the outcome and plans to defend his company's use of the name. "We expect to keep operating under the same name," he said.
Another Houston-based company is facing problems of a different nature. Money Mortgage -- a subprime residential and commercial lender-- is apparently on the brink of insolvency. A former Money Mortgage insider, who spoke to MortgageDaily.com on the condition of anonymity, indicated that the company has run out of cash to fund its operations.