Judge Denies Restraining Order Against Lend America

Posted by Orb Staff on October 22, 2009 No Comments
Categories : Mortgage Servicing

A federal judge in Central Islip, N.Y., has denied U.S. Attorney Benton J. Campbell's request for a restraining order that would have prevented Ideal Mortgage Bankers (i.e., Lend America) from originating Federal Housing Administration-insured loans.

Campbell had filed the complaint at the request of the Department of Housing and Development (HUD), whose Mortgagee Review Board alleged earlier this week that Ideal violated FHA lending requirements. The HUD board says Ideal made false certifications regarding borrowers' income and creditworthiness.

‘We are obviously pleased with the court's decision," a Lend America press statement says. "We look forward to continuing our partnership with HUD and our mission of providing affordable financing for those borrowers in need.’

The judge, Joseph F. Bianco, has requested that prosecutors tell him the date on which they plan to seek a preliminary injunction, Dow Jones Newswires says.

SOURCES: Lend America, Wall Street Journal

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