The end of Lend America
Independent mortgage originator, Lend America announced today that it would cease operations immediately. This came as a surprise to Better Homes and Garden Realtor, Lisa Sanderson said that “we had an FHA mortgage commitment in hand and were supposed to close Wednesday. Tuesday, they informed us that they needed 48 hours to ‘review and clear to close’. Today they don’t answer their phone.”
On Monday, the FHA pulled Lend America’s approval for making government-backed loans because of abuses, fining them half a million dollars and possible fraud charges may soon be filed.
Sanderson said, “we have a seller who has moved out of the house and a buyer who is dying to move in-two sets of lives on hold for a couple more weeks as we scramble to get the file transferred to another lender. I had no previous experience with this lender so I urged the buyer via his agent to consider a local lender when the offer was first presented. Despite my concern, things seemed to be going smoothly until this ultimate, unexpected ‘glitch’.”
Joe Loomer
December 2, 2009 at 5:25 am
“…so I urged the buyer via his agent to consider a local lender when the offer was first presented…..”
Words to live by.
Navy Chief, Navy Pride
Lisa Sanderson
December 2, 2009 at 7:20 am
Watching tv news and hearing about another lender going out of business is not quite the same as seeing it happen IRL to real people.
Hank Lerner
December 2, 2009 at 12:57 pm
Amen Lisa. As you know, the PAR Agreement of Sale asks buyers to identify their lender to the seller for just that reason.
Portland Condo Auctions
December 2, 2009 at 7:37 pm
Stick with the lender that you can call directly and the guy that you can go meet in person. There is nothing more helpful than a local lender that you like and who can take care of the process from start to finish. The big guys cannot compare to that kind of service.
-Tyler