Posted on: 02nd Dec, 2009 08:09 pm
Just an FYI in case you did not hear the news.....
Melville NY based Lend America closed its loan making operation Tuesday Dec 1, 2009 and laid off most of its 600 workers, a day after federal officials revoked its license to make loans insured by the Federal Housing Administration.
FHA backed loans made up at least 90 percent of the company's business.
Last year, Lend America closed 6,986 loans, or $1.36 billion in loans and for this year it projected 12,500 loans closed, for about $2.5 billion. The company serviced about $1.8 billion in loans and it is not clear whether it will continue to provide that service.
I wonder WHY they lost their license. If anyone knows, pleaese respond. If I hear of anything else on this topic, I will also reply to this post.
FHA INFORMATION ["www.dreamhomefinancing.com/FHA.aspx"]
[size=9:38a9750680][color=Red:38a9750680][Link deactivated as per forum rules. Thanks.][/color:38a9750680][/size:38a9750680]
Melville NY based Lend America closed its loan making operation Tuesday Dec 1, 2009 and laid off most of its 600 workers, a day after federal officials revoked its license to make loans insured by the Federal Housing Administration.
FHA backed loans made up at least 90 percent of the company's business.
Last year, Lend America closed 6,986 loans, or $1.36 billion in loans and for this year it projected 12,500 loans closed, for about $2.5 billion. The company serviced about $1.8 billion in loans and it is not clear whether it will continue to provide that service.
I wonder WHY they lost their license. If anyone knows, pleaese respond. If I hear of anything else on this topic, I will also reply to this post.
FHA INFORMATION ["www.dreamhomefinancing.com/FHA.aspx"]
[size=9:38a9750680][color=Red:38a9750680][Link deactivated as per forum rules. Thanks.][/color:38a9750680][/size:38a9750680]
The official website of Lend America - "http://www.lendamerica.com/" also reports the same. It's been mentioned that from immediate effect, the company has ceased its formal operations and loan origination capability. However, it is mentioned in their official website that they would fulfill their obligations towards Fannie Mae (FNMA), Ginnie Mae (GNMA) and regulatory agencies. For the benefit of the borrowers, the customer service department of Lend America is still available. Borrowers can contact them regarding funding inquiries, FHA Case numbers, etc.
Hi,
As far as I came to know, the Justice Department had filed a civil lawsuit against Lend America for various types of abuses, including originating loans that do not meet eligibility criteria, fabricating borrowers' incomes to get them approved, submitting false documents, etc. The recent revoke of Lend America's license to make FHA-insured loans seems to be a result of the civil lawsuit filed against the company. The HUD had also reprimanded the company earlier this year for its unauthorized use of FHA's logo in the marketing materials.
As far as I came to know, the Justice Department had filed a civil lawsuit against Lend America for various types of abuses, including originating loans that do not meet eligibility criteria, fabricating borrowers' incomes to get them approved, submitting false documents, etc. The recent revoke of Lend America's license to make FHA-insured loans seems to be a result of the civil lawsuit filed against the company. The HUD had also reprimanded the company earlier this year for its unauthorized use of FHA's logo in the marketing materials.
the usual reasons for a license loss, i guess.
I received a FHA loan through lend america without home inspection or finished appraisel.My real estate agent told us we didn't need one and I didn't find out about unfinished appraisel till a year later.Hows that for FHA Banking ?!!