U.S. Housing and Urban Dev. Secretary Hit with Class Action Lawsuit

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Secretary of the U.S. Department of Housing and Urban Development Julian Castro and the department itself (HUD) are the defendants in a proposed class action over their alleged “abysmal conduct in disposing of the collateral for a loan originated by plaintiff Associated Mortgage Bankers, Inc.” According to the complaint, HUD allegedly improperly sold a property valued at $550,000 for a little more than $360,000 as part of a bulk sale of defaulted notes. Calling the defendants’ conduct “outrageous,” the plaintiff say as a result of the undersell—and an agreement to indemnify HUD for any losses suffered in connection with the liquidation of this particular loan—they must pay losses totaling almost $175,000.