You can fix the housing. It isn't easy, but it is possible - and it's a two man job. This does happen to OEMs, and they don't throw away axles.
This takes some effort, and not a little finesse, but you need a torch (oxy-acetylene, not a propane model) and a source of water spray (air spray, not water from a hose - it needs to be a heavy mist in a stream that you can use to target a limited area). Very carefully heat the side of the axle housing away from the direction you want it to bend. Spray cold water on the other side and it'll curl towards you. It doesn't take much heat and the metal moves really fast, so take it slow. Remember I said it's a two man job? One to wave the torch, the other to spray the water and watch the bend.
The easiest spray tool is a venturi; you'll need a 5-gal bucket of water, a three port connector and three air lines. Clear plastic tubing and a push lock connector is fine. The two inline ports have to be the same size, the third, 90° out from the other two, should be no larger than 80% of the diameter of the other two. This sounds complicated, but it isn't; these are standard reducing tee fittings. The drop from the smaller port goes into the bucket. One of the inline ports is connected to compressed air, the other has the spray nozzle on it. Once the air is connected, water will be drawn into the smaller drop and out the nozzle, once it's opened. You don't have to use this method, but it is the simplest in operation.
This is easily doable in a home shop, or even a garage. Just take your time - it's very easy to overshoot the mark. If you do, just heat the water side and spray the previously heated side. It'll bend back the other way.
The finesse part is the path of heat application: it's best to apply it 90º to the axis of the housing (if the axle sits horizontally on a pair of stands, wave the torch vertically). This way, you can control and localize the heat. Use a rosebud, not a welding tip. The support must be far enough inboard of the heat point so it doesn't act as a heat sink, and will allow the tube to move without binding. Wood sawhorses are best (or a wood plate on a metal stand - point is, you want a good insulator), and placed no nearer than 6 inches from the heat point.
If you don't spend too much time on this, you won't affect the microstructure and the axle will be just fine. Do not let the metal change color. Ever.
I've used this method to save very expensive steel parts from scrap. This method will work on all steel shapes, and it's especially good for really large ones, but don't ever try it on cast iron. You'll create a time bomb.
Of all my posts, this is the one I expect I'll get the most flame out of. From people who've never done it. I'd be interested to hear from all the other axle manufacturing engineers on the forum (current or former), before hearing from everyone who's never been in a factory before.
