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Lend AmericaPossible Fraud

Ideal Mortgage Bankers, doing business as Lend America and Lending Key (Ideal), allegedly violated several Federal Housing Administration (FHA) origination and underwriting requirements, according to a review by the Department of Housing and Urban Development’s (HUD) Mortgagee Review Board.

The Mortgage Review Board alleges no fewer than 12 violations, finding that Ideal made false certifications, failed to document borrowers' income and approved loans that did not meet the FHA’s minimum credit requirements, among other charges.

More than $14 million of loans were subject to false certifications, says U.S. Attorney Benton J. Campbell, who, at HUD's request, has filed a complaint against Ideal in federal court in Central Islip, N.Y. The complaint seeks a court-ordered injunction that would prevent Ideal from making FHA-insured loans. According to a press release from Campbell’s office, the complaint also seeks relief against Lend America’s executive vice president and chief business strategist, Michael Asshley.

HUD has notified four of the company's underwriters that it was suspending and/or proposing debarments for their actions in connection with these violations. Separately, HUD issued pre-penalty notices to these underwriters advising them that the department is considering imposing civil money penalties against them as well.

Ideal has 30 days to respond to the board's notice, and the underwriters have 30 days to oppose their suspensions and/or proposed debarments and to respond to the allegations in the pre-penalty notice.

"Any FHA-approved lender that seeks to do business with us must follow our standards - it's just that simple, " FHA Commissioner David Stevens says. "If we determine that our partners are not playing by the rules, they'll cease being our partners.”

A spokesman for Lend America released the following statement: "The company was taken by surprise, expects to continue in business and will respond more completely once all allegations are reviewed."


  • Fa
    fairlending Oct 22, 2009

    Lend America Wins Round With Feds
    Asher Hawkins, 10.22.09, 12:10 PM EDT
    Court rules Long Island lender can keep making HUD loans while government lawyers press a civil suit.

    The feds have lost the first round in their fight to stop a controversial Long Island mortgage lender from making government-guaranteed loans.

    Late Wednesday, U.S. District Judge Joseph F. Bianco of the Eastern District of New York denied a government request for a temporary restraining order that would prevent Lend America from making such loans while a civil suit seeking a permanent ban is being decided.

    Federal housing officials have accused Lend America of falsely certifying that would-be home buyers who received $14 million in loans were financially sound enough to meet the government's mortgage insurance requirements.

    Such accusations might rattle Lend America less so than other firms. Michael Ashley, Lend America's chief strategist, knows what it's like to survive a bruising legal fight with the government. In the early 1990s, Ashley was working at his father Kenneth's mortgage lender when the government accused it of defrauding Freddie Mac ( FRE - news - people ).

    "They go after the entire family, " Ashley recalled in an interview last year. "They came after me; I was young and inexperienced, newly married, baby on the way. On my attorney's advice, I pleaded guilty to mail fraud to get it behind me."

    Ashley was given probation and told to fork over $30, 000 to Freddie Mac. He was allowed to reenter the government-regulated mortgage business by the end of the decade. His father wound up serving nearly four years in prison.

    0 Votes
  • Sa
    sally jones Oct 22, 2009

    The judge saw right through what appears to be a NOTHING more than a witch hunt for Michael Ashley. It was thrown out because there was not one stitch of evidence ! no need to say anymore please 40 loans out of 12, 000 you do the math. The percentage is much less than any other mortgage bank on long island.

    -1 Votes
  • Fa
    fairlending Oct 30, 2009

    Sally Jones,

    The Judge absolutely did not through this case out. Honorable Bianco did not rule in the Government's favor concerning the T.R.O.

    This case is still active and the Government will proceed with the case. I did have the opportunity to read the complaint entirely. The 40 loans only focus on the State of New York and for a short period of time. Borrowers of those 40 loans that the Government is using as an "EXAMPLES" went into default within a short time after the loan funded. We are all certain that there are more than 40 borrowers. Even if there were 5 borrower, 5 would be sufficient, it is still fraud and damages all of us as citizens of the USA.

    1 Votes
  • Ml
    mlbfan246 Oct 31, 2009

    hey Sally Jones do you work for Lend America? We all know they are crooks! I can't wait for them to get what they deserve!

    1 Votes
  • Fa
    fairlending Dec 08, 2009

    I recently received an abundance of calls from homeowners that refinanced with Lend American that claim their original loans were not paid off and now they have two loans. Unfortunately, I can not assist you with trying to get your loans to fund. In the past I have assisted some borrowers, which ultimately many of the loans were paid off. What I am doing is looking into an agency that can assist you. I will on my own free time call back to all that have left me a message. In the meantime, I do suggest that you consult with an attorney. If you have an FHA loan, please call FHA Resource Center. You should also make a complaint with the Federal Trade Commission. Again, I will try to find the appropriate agency to assist you and I will post the information as soon as I do come across that agency.

    0 Votes
  • Ta
    tact98 Dec 15, 2009

    we also closed on our loan with lend america the beginning of october. like so many others, our old mortgage company has not been paid off yet and has only had contact with lend america once when the buy-off amount was requested. i have called close to everyday for two months and of course have received the run around. now that they have closed their doors, the company servicing their loans have no idea, or so they say, who to direct me to. if lend america has never paid off the old mortgage, is our contract with them still legal? in reality, our loan really hasn't been closed out. we are making payments to old company to avoid foreclosure, and i guess that will leave us in default with lend america as there is no way we can afford two mortgages. that was the point of refinancing and moving to a FHA loan in the first place. what can the FHA resource center do for those of us that put their trust in lend america? please keep me posted.

    Amy Weber
    [email protected]

    0 Votes
  • Le
    lendamericasucks Dec 27, 2009
    This comment was posted by
    a verified customer
    Verified customer

    FHA/HUD is not going to help any of us. I have been in contact with them and the FBI in NY and VA, the attorney general offices in both NY and VA, the BBB of NY, consumer affairs, the SCC, both of my senators in VA, my house of rep., my local delegate, and anyone else who I can complain to.I am only getting help from 1 or 2 people. After we caught up the 2 past due payments on our 1st mortgage, and kept is current for the last 2 payments, and paid LA 2 payments, we have decided NOT to pay LA until they pony up. We have hired an attorney. It is very hard to get info from anyone because no one knows what is going on. I have been told that the New York Banking Commission has taken over some of the loans from LA. And just in the last few days, I have been told that Ginnie Mae is taking some of those loans. Your story mirrors ours and a lot of others out there. When we re-fi ed, we got some cash out, and some of that had to be used to catch up the 2 late payments. Now I found out LA asked for a new pay off just earlier this month. I don't know what will happen to any of us. I pray everyday that something breaks and we will all not be held responsible for this mess, and maybe get to keep what we have may have received without having to repay. That would really piss off Michael Ashley. He will get his, someday, someway, somehow. In the meantime, keep praying and keep complaining. They monitor this site, thinking we are stupid enough not to know. The Feds also monitor this site. Maybe, maybe, maybe somewhere over the rainbow...

    0 Votes
  • Le
    lendamericascrewedus Dec 30, 2009

    we should all get our loans satisfied at the cost of lend of charge..paid off with no strings attached..that would make alot of people happy..CAUSE of their screw up...sopund good? lets make noise..

    -1 Votes
  • Le
    lendamericasucks Dec 30, 2009
    This comment was posted by
    a verified customer
    Verified customer

    I say we make Michael Ashley responsible, since he got our money he will not be out of anything but stolen money!!! Better yet, we all get together and get a keg and go see Obama. Get him drunk enough and he might be able to help us before he jumps on his plane ( which we pay for), and go on another tax payer funded trip...

    0 Votes
  • Ws
    WS LYNN Apr 28, 2012

    we too have been cheated by lend America. first mortgages not pd. off, other bills not pd. after two mo.of sending lend America payments we had to go back to paying old bills and mortgages. It has been an uphill battle ever since. then the loan was turned over to loan care, who is in the process of foreclosing on us. we are about to loose a home that we have lived in for 17 years because lend America did not follow through with their part. How CAN THEY TAKE YOUR HOUSE FOR MONEY THAT YOU DID NOT RECEIVE? What has our world come to that the crooks come out the winner. The ironic thing is we had never been late on our house payment until this happened. We need to to bond together and stand our ground some how. If anyone has been successful in their battles with this any information would be appreciated. alost at the end of our rope!!!

    0 Votes

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