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Lend America and Its VP Barred from Federal Mortgage Market

New York-based ""Lend America"":http://www.lendamerica.com and its senior-level strategist and VP, Michael Ashley, have been permanently banned from doing business for the ""Federal Housing Administration"":http://www.fha.gov (FHA), according to recently released court documents.

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Lend America was known for its FHA lending, but last October, the company was ""slapped with a federal lawsuit"":http://dsnews.comarticles/lend-america-faces-federal-lawsuit-fha-suspension-2009-10-20 alleging it falsely certified that borrowers who received over $14 million in loans met FHA's lending requirements.

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In early December, Lend America officially lost its FHA approval and was defaulted by Ginnie Mae, forcing the company to ""close its doors"":http://dsnews.comarticles/lend-america-ceases-operations-2009-12-02.

As _Reuters_ explained it, Ashley helped build Lend America into one of the most prolific producers of FHA loans, buoying the company's growth even as the financial crisis set in, freezing credit for many borrowers who turned to the federal mortgage insurer as their last hope to refinance costly loans.

While Ashley has not admitted any wrongdoing or involvement in Lend America's questionable practices, in a federal court ruling last week he was barred from ever originating, marketing, or submitting claims for FHA mortgages. The judgment also prohibits Ashley from being employed in any capacity, even as a consultant, for any company that has connections to the FHA.

A U.S. federal attorney last October accused Ashley of violating an earlier industry ban, stemming from a 1993 complaint the he conspired to commit wire fraud related to other cases of mortgage fraud. Ashley pled guilty to those charges.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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