Ideal Mortgage Bankers no more
If you were thinking about getting an FHA-backed loan through Lend America, it’s time to come up with a different plan. Lend America, which is operated by Ideal Mortgage Bankers, has shut down. Ideal Mortgage Bankers also originated mortgages under the moniker Lending Key, but Ideal Mortgage Bankers is officially out of business.
The Federal Housing Administration withdrew its approval from Ideal Mortgage Bankers Monday, Nov. 30, and Lend America and Lending Key are ceasing any and all lending. In October a civil lawsuit was filed against Ideal Mortgage Bankers.
Word from the FHA
HousingWire.com reports that the lawsuit “reveals allegations of a pattern of mortgage fraud that’s spanned more than 20 years across a number of mortgage firms.” The FHA appears to believe it’s possible that the crimes were unintentional, but that matters little.
“We have no tolerance for lenders who abuse their FHA-approval,” said FHA commissioner David Stevens. “The evidence in this case points to a disturbing pattern of senior officials and underwriters, either not knowing what they were doing, or not caring. Thus, Ideal has been given an unceremonious booting from participation in the FHA insured mortgage program.”
The lawsuit says that Mike Ashley, in sales staff meetings and in general, “encouraged Lend America sales staff to originate FHA loans, even when borrowers were not eligible.” He allegedly told people they could make FHA backed mortgages loans regardless of their credit scores, which is patently false.
A long time coming
Apparently, the loans in question span a time period of 20 years. So it’s about time Lend America got hauled into court. With mortgage fraud and debt help fraud making the rounds even more these days, we certainly don’t need large companies like Lend America piling it on.
I hope that this whole subprime mortgage crisis has taught lenders a lesson, and I hope they won’t forget it. The recession we’re going through is one of the worst, but it seems that we go through one every ten years or so, which should be a reminder to safegaurd your budget and your credit.
Types of fraud
Whether Lend America did, in fact, commit fraud will be decided in court. However, this story presents a good opportunity to remind people looking for debt relief or mortgage loan modification how to avoid fraud. Make sure you don’t pay fees up front for consultations or debt consolidation loans or mortgage restructuring. You only should pay debt relief or mortgage counselors after the work is completed.
Mortgage restructuring does not require that you sign the deed to your house over to someone else. Make sure you don’t hand over your most valuable asset to a scammer. Remember that research and knowledge are the best protection against getting swindled. Make sure you thoroughly research and know any institutions you trust with your finances. You can never be too careful or know too much about a business. If anything about a company seems sketchy, there are plenty of actual legitimate ones out there, so don’t be afraid to walk away and find someone else.
