HUD SUSPENDS FORMER PRESIDENT OF LEND AMERICA

HUD SUSPENDS FORMER PRESIDENT OF LEND AMERICA

Primeau banned from FHA following guilty plea in mortgage fraud scheme

WASHINGTON, DC – October 13, 2011 – (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) today announced it is immediately suspending Michael Primeau, former President of Lend America, from doing any business with HUD following his admission that he engaged in a wide-scale mortgage fraud scheme. Specifically, Primeau pled guilty to charges he directed employees of Lend America, a former FHA-approved lender, to divert mortgage funds intended to pay off borrowers’ first mortgages at refinance closings in order to pay company operating expenses.

“We take this action to protect the public,” said HUD’s General Counsel Helen Kanovsky. “Beyond this particular suspension, the broader message to the lending community should be crystal clear – the federal government will not do business with those who fleece homeowners.”

Two years ago, HUD found that Ideal Mortgage Bankers, doing business as Lend America and Lending Key (“Ideal”), repeatedly violated the Federal Housing Administration’s (FHA) origination and underwriting requirements, including submitting false certifications and failing to document borrower income and creditworthiness.

As a consequence, HUD withdrew the company’s FHA approval, preventing Ideal from originating and underwriting new FHA-insured mortgages or from participating in the FHA single family insurance program. In addition, the Government National Mortgage Association (Ginnie Mae) terminated Lend America as an issuer and seized its portfolio. Read HUD’s news release.

###

HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
HUD is working to
strengthen the housing market to bolster the economy and protect consumers; meet the
need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build
inclusive and sustainable communities free from discrimination; and transform the way HUD does business.
More information about HUD and its programs is available on the Internet at
www.hud.gov and
http://espanol.hud.gov
. You can also follow HUD on twitter @HUDnews, on facebook at
www.facebook.com/HUD, or sign up for news alerts on HUD’s News Listserv.

Contact:
Brian Sullivan
(202) 708-0685

SHARE
HUD

U.S. Department of Housing and Urban Development (HUD) is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws.

Contact:

Brian Sullivan
(202) 708-0685

Previous articleKeystone Pacific Property Management Welcomes Brittany Smith to Its Team as a New Development Community Association Manager
Next articleRE/MAX Named Top Franchisor for Real Estate