Lend America Crooks!

This is from NewsDay.com at http://www.newsday.com/long-island/nassau/melville-loan-firm-exec-defend-fraud-charges-1.1542516

"A top executive at a mortgage company accused by the federal government of making fraudulent loans forcefully defended both himself and Melville-based Lend America Thursday, a day after a judge refused to issue a restraining order against the company.

"It's unfounded, it's ridiculous," said Michael Ashley, 44, an executive vice president of the company. "Lend America is the most legitimate lending company out there. We stand behind everything we do over here."

Ashley and Lend America were accused by the U.S. attorney's office in a 155-page federal complaint filed Tuesday of running a scheme to defraud the Federal Housing Administration. The complaint said the company deliberately made FHA-insured loans to unqualified borrowers, knowing that if the loans defaulted, the FHA would pick up the tab.

Federal Judge Joseph Bianco, ruling in Central Islip, denied the U.S. attorney's request for a temporary restraining order preventing Lend America from issuing FHA-backed loans. He permitted the U.S. attorney's office to file another injunction. Officials did not say Thursday if it would.

In court papers, Lend America's attorneys argued the government presented no evidence that the company was either committing or was about to commit any fraud.

The federal complaint cited 40 instances of what the government said were fraudulent loans and accused Ashley of leaving a trail of fraud and other violations at numerous companies in his wake since pleading guilty in 1993 to conspiracy to commit wire fraud.

But defense papers said the 40 cases were old ones - sometimes years old - and statistically insignificant. "Forty fraudulent loans - that's very serious," Ashley said. "But we originated 12,000* loans."

The defense papers also said Lend America tightened its controls over loan officers during the summer and fired some employees it believed engaged in fraudulent practices.

Ashley said the FHA wouldn't lose a cent. He said the investigation was the result of an employee in the federal Housing and Urban Development department's inspector general's office who has a "vendetta" against him. He declined to identify that employee.

As for himself, Ashley acknowledged his felony record but noted the case occurred 16 years ago. "It is not indicative of who I am today," he said.

*Correction: The number 12,000 was incorrect in previous versions."


What is this crap? They are still in business and The FHA only checked for violations in New York! What about the other states? I am in Iowa and I can tell you they are messing with people here! If this is a Federal case, what about the rest of us? Don't we matter? Just from looking at complaint boards I can assure you they are writing bad loans in other states! Get with the program! Our mighty tax dollars at work! We want to be heard too! Watch out Michael Ashley. We are coming for you and your lying cheating company too!

The Begining Of The END!

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."

And So It Begins The Lend America Scam

And so it begins. The great American scam repeated all over again. And we were worried about AIG? At least they didn't use images of the White House to scam people.

Lend America To Launch Wholesale Mortgage Lending Platform




Press Release

October 01, 2009




Lend America Wholesale to Operate Through a Centralized Model to Mitigate Risk and Drive Efficiencies



MELVILLE, NY - October 1, 2009 - Lend America, a leading next generation FHA lender, announced today that it is entering the wholesale residential mortgage lending business by launching Lend America Wholesale, to compliment its successful nationwide retail lending platform, and offer mortgage brokers and borrowers greater choice, knowledge and efficiency in the mortgage lending process. Lend America Wholesale anticipates accepting its first wholesale loan in mid October 2009.



Lend America Wholesale is built around a mission of responsible lending, with a clear focus on service and speed. The business is looking to build long-term relationships with a high quality, skilled and credible mortgage brokers.



"A full blown reset has taken place within the wholesale lending channel since our parent company strategically exited the wholesale business in 2008. With wholesale lending platforms dwindling we believe today there is a tremendous opportunity to help mortgage brokers better meet borrowers' needs, increase close rates and rebuild their businesses," commented Michael Ashley, Chief Business Strategist of Lend America. "Through our innovative centralized model and systematic loan process, which address risk factors as well as time and cost inefficiencies in the lending value chain, we can quickly become a major resource for the mortgage brokerage community. In addition, we are able to build off our past experience to insure we are better equipped to meet the needs of the mortgage brokerage community."



Lend America Wholesale will be based in Melville, New York and operate through a centralized model in order to better mitigate the risk associated with the wholesale lending process and improve the consistency and quality of the broker experience. Building on a base infrastructure of 25 geographic focused teams, more the 30 FHA Direct Endorsed underwriters and an automated paperless platform for all loan originations and processing, Lend America Wholesale will look to partner with mortgage brokers committed to extensive FHA product knowledge, ethical behavior, customer service and open and honest communication. The business is currently licensed to do business in 47 states.



Mr. Ashley added, "With our unparalleled leadership and technology platform, which brings the entire mortgage process into a single user friendly application, we believe we can help mortgage brokers build a better business. In addition, our wholesale team has the experience to offer real time solutions and train or answer questions on FHA products or loan processes in order to help our mortgage broker partners close loans faster. In the current challenging environment mortgage brokers need the right partner to be successful and we can definitely fill the void that is currently impacting the wholesale channel."



For more on Lend America Wholesale, please contact 1-800-707-Loan.

Update On Lend America Scam.

I have learned from an unnamed source that Lend America is about to enter the wholesale loan business. The goal is to dump a lot of bad loans on the market and declare bankruptcy. They can then buy back this bad debt at a fraction of the cost, foreclose on these homes and make a huge profit off the sale of these properties. I guess they where not making enough padding the closing costs they have sunk to a new low and found another way to rip our government and the people off. I truly feel sorry for Michael Primeu who is the Company head on paper and who will most likely take the fall for Micheal Ashley's scams. You can always ask Michael's father about that. I wonder if this will be another power play between Primeu and the government with Ashley caught in the middle. If you believe that have I got the mortgage for you.

Update On My Complaint with The State of Iowa

Update on my complaint. Mr. Wilkerson called my fraud investigetor early last week to tell her that they had not done this. My investigator said that was fine but, the State of Iowa required that in writing! It has been 12 days and we still don't have this in writing! I was also told two months ago that Cris Ryan had been fired but I found out today that up until last week he was still working for them and only left because he got a better job. How can you trust someone who lies more than they tell the truth!

Loan Modification

What ever you do, do not fall for the scam of the Modification Attorney. Never take advise that tells you NOT to pay your mortgage and never pay for this service! Fist, talk to your lender. If they are unable or unwilling to help, then talk to your state! If you pull up the website for the Attorney General for your State, there will be a link for those in need of modification assistance. This is a free service! Here is a n example taken from the Iowa State home page:

Who We Are Attorney General
Tom Miller
Office Directory What We Do Protecting Consumers Fighting Crime
Helping Victims of Crime
Working for Farmers
Protecting the Environment
Protecting Charitable Giving
Raising Child Support Awareness
Representing State Government
Issuing Attorney General Opinions
Enforcing Tobacco Laws
Protecting Utility Customers Resources File a Consumer Complaint Other Helpful Resources News Releases & Publications
Legal Resources
Jobs & Internships
Contact Us Consumer
Private Right of Action: What consumers need to know
IOWA MORTGAGE HELP.COM 877.622.4866

Attorneys: request Mediation Notice form here


Information You Can Use

Eldora / Hardin County hail and windstorms: information for storm victims.

Consumer "Private Right of Action" --
What Consumers Need to Know.

Consumer Advisory Bulletins -- Tips for Consumers on Scores of Topics

Most Recent:

How to Deal With Credit Card Offers

Cash for Clunkers TIPS

Consumer “Private Right of Action” -- What Consumers Need to Know

Call the Iowa Mortgage Help Hotline

How to Avoid Becoming a Victim of Identity Theft and What to Do if You Think You May be a Victim



Remember, if it sounds to good to be true, it is. These schemers will tell you they can cut your interest in half and all for a few thousand dollar...they will say just send us your money and don't pay your mortgage, you have to be behind to qualify. WRONG! Call your state or your lender and if all else fails, call your Representative or Congressman!

You have to stand up for yourself and demand your rights because no one will do it for you!

Why isn't There More Bad Press?

This is also from Complaints Board

Taken from Business week article (link is below quoted article)..Lend America in Melville, N.Y., uses cable television infomercials and a toll-free number (1-800-FHA-FIXED) to encourage borrowers in trouble with adjustable-rate mortgages to refinance with fixed-rate loans guaranteed by the FHA. Anticipating the real estate crash, the Long Island firm switched its strategy in 2005 from subprime to FHA-backed mortgages, says Michael Ashley, Lend America's chief business strategist. This year, the company will make 7, 500 FHA loans, worth $1.5 billion, he says. "FHA is a big part of the future, " Ashley adds. "It's the major vehicle for the government to bail out the housing industry."

But why the federal government would want to do business with Lend America is perplexing. Ashley has a long history of legal scrapes. One of them led to his pleading guilty in 1996 in federal court in Uniondale, N.Y., to two counts of wire fraud related to a mortgage scam at another company his family ran called Liberty Mortgage. He was sentenced to five years' probation and ordered to pay a $30, 000 fine. His father, Kenneth Ashley, was sentenced to nearly four years in prison. "I was just a pawn in a chess game between my father and the government, " says the younger Ashley, who is 43. "It doesn't affect my ability to do lending." The default rate on Lend America's current FHA loans is 5.7%, or 53% above the national average, according to government records.

Asked about FHA oversight of former subprime firms, agency spokesman Lemar Wooley says: "FHA has taken appropriate actions, where necessary, with these lenders with respect to their participation in FHA programs." First Magnus, Nationstar, and Lend America met all applicable federal rules, Wooley says. But on two occasions since 2000 one office of Lend America in New York temporarily lost its authority to originate FHA-backed loans because of an excessive default rate, he says. Wooley says the FHA wasn't aware that Lend America's Ashley had been convicted. The firm didn't list Ashley as a principal, Wooley says. FHA lenders are required to disclose past regulatory sanctions and are forbidden to employ people with criminal records.

wonder why lend america has over 700 employees--not including mike ashley...why not ask all the “new” employees who had to close their doors due to fraudulent activity and predatory lending??? i guess business week is also wrong????