The Department of Housing and Urban Development reasonably terminated a $49 million mortgage loan servicing support contract to Ideogenics LLC after the Small Business Administration decided that the company lacked small business eligibility, the U.S. Court of Federal Claims ruled.

The termination was proper following the SBA’s conclusion that Ideogenics’ affiliation with two subcontractors disqualified it from receiving the contract set aside for small businesses, Chief Judge Susan G. Braden said.

The SBA reasonably concluded that Ideogenics violated a regulation...