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|Consumer Alert: Lend America|
The Department of Housing and Urban Development (HUD) announced on Monday, November 30, 2009, that it was immediately withdrawing approval for Lend America, a NJ licensed mortgage banker based in Melville, New York, to originate FHA-insured residential mortgage loans. The HUD press release on this matter can be viewed at: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2009/HUDNo.09-217.
On December 1, 2009, Lend America announced it was ceasing all mortgage loan origination operations effective immediately. See its web site at: www.lendamerica.com.
On December 7, 2009, Neil N. Jasey, the Commissioner of the New Jersey Department of Banking and Insurance signed a nine-count Cease and Desist Order (Order No. E09-8461) against Lend America, ordering it to cease all new residential mortgage loan business in New Jersey. The Order requires Lend America to, among other things, immediately take steps to obtain funding for any of its loans that have closed without funding as of December 7 at no cost to affected borrowers, and to transfer all loan applications pending in the loan production “pipeline” as of December 7, but not yet closed, to a viable alternative lender at no cost to borrowers. The Order demands restitution to borrowers of costs associated with funding failures and delays. The Order also seeks license revocations and administrative penalties, for a number of regulatory compliance violations. On December 8, 2009, the Order was amended to remove the name of an attorney from the service list, who does not represent the company for this purpose. The company is afforded a right to request a hearing. Several other states have taken similar action.
Consumers should be aware that Lend America has no authority to make residential mortgage loans in New Jersey as of December 7, 2009.
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