Allonhill, a mortgage due diligence provider that two weeks ago lost a consulting contract with the Office of the Comptroller of the Currency, has given layoff notices to dozens of employees, according to industry consultants who were briefed on the matter.
Sources say Denver-based Allonhill let go both full-time employees and third-party contractors. At deadline, Sue Allon, CEO of the firm, did not return a telephone call and email about the matter.
Staffers who were let go worked at the Denver tech center location. Officials said Allonhill is hosting a job fair to try and place those affected.
About two weeks ago the OCC dismissed Allonhill which worked as a consultant overseeing a massive foreclosure review after it discovered what it described as a conflict of interest in outside work the company has performed.
The OCC directed Allonhill to cease reviewing loan files related to the independent foreclosure review, which was required under the April 2011 consent orders with the 14 largest mortgage servicers. Allonhill was the primary independent consultant for Aurora Bank, and had also reviewed Wells Fargo loan files as a subcontractor for Promontory Financial Group.
The OCC said it made the determination after Allonhill disclosed that it had performed work for "third parties," including reviewing loan files that are part of the same pool of loans that the company was reviewing as part of the foreclosure review.
The agency said it "determined [the work] to be inconsistent with the independence requirements for independent consultants, prescribed by the OCC." It added, "The decision does not reflect on the quality of work performed to date by Allonhill but is necessary to ensure the independence of the loan review process going forward.”