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’.”