Sen. Charles E. Schumer, D-N.Y., is calling on Federal Housing Administration (FHA) Commissioner David Stevens to ensure that ‘legitimate, qualified and previously approved’ Lend America borrowers are able to secure mortgages at rates and prices similar to those offered by the lender.
Lend America, based in Melville, N.Y., shut its doors this week after the FHA withdrew its approval, citing fraudulent lending practices. The company was the largest FHA lender in the New York metro area, having closed about $1.36 billion in loans on the year, according to a Newsday report. The company services about $1.8 billion in loans, according to a statement from Schumer.
The FHA, in addition to ensuring that any active borrower who qualifies for an FHA guarantee is able to continue their mortgage without interruption, should help previously approved, legitimate and qualified borrowers close on a new, similar mortgage with another lender, Schumer says.
According to Schumer, who has written to Stevens on this subject, callers to Lend America offices heard a recorded message telling customers it was stopping operations and that it would honor obligations to past and current borrowers but does not address how it will help customers awaiting closing.
"Lend America borrowers who have questions concerning their existing account and/or payments, please continue to remit your payment as normal according your coupon instructions, a message on the company's Web site says, providing the phone number of Lend America's servicing unit.
SOURCE: Office of Sen. Charles Schumer