ProPublica's journalists, who have been doing some of the best work examining the mortgage industry fallout, turns the spotlight on Houston-based mortgage firm Allied Home Mortgage Capital, run by Jim Hodge. What's the problem with Hodge's firm? Well, the company appears to be booming -- despite having the highest serious delinquency rate among the top 20 Federal Home Administration loan originators from June 2008 through May.

From ProPublica:

But an examination of Hodge's mortgage company by ProPublica found that its prosperity has come at a price for dozens of customers who claim Allied brokers have put their homes at risk, lied to them or improperly siphoned money from their deals.

The firm has left behind a trail of alleged misconduct and piecemeal government sanctions spanning at least 18 states and seven years. Yet Allied chugs along unimpeded, aided by access to the government-backed Federal Housing Administration loan program.

Read the whole story, including a helpful timeline about all of the sanctions levied against Allied.

Trent Seibert can be reached at trent@texaswatchdog.org or 832-316-4994.