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Lend America Ups 2009 Projection, Launches Fannie Servicing

Melville, New York-based ""Lend America"":http://www.lendamerica.com, a direct-to-consumer Federal Housing Administration (FHA) lender, recently announced that it has raised its 2009 projection. Based on the company's first quarter business, Lend America estimates that its servicing assets will surpass $1 billion by the end of the second quarter of 2009 and grow to over $2 billion by December 31, 2009, a 33 percent increase over the company's previous forecast.
Lend America, which launched its servicing initiative after receiving approval to issue Ginnie Mae mortgage-backed securities (MBS) in the second quarter of 2008, has already more than doubled its servicing portfolio in the first quarter 2009 to over $500 million, compared to $223 million as of December 31, 2008. The company said the increase is being driven by its FHA retail business, which topped $450 million in the first quarter of 2009.
Commenting on the company's strong results, Michael Ashley, chief business strategist for Lend America, said, ""The half billion dollar mark is a milestone that we are proud of, but it only represents 25 percent of our year-end goal of having over $2 billion in servicing assets. The most important factor of this milestone is that it demonstrates our continued commitment to provide reliable fixed-rate financing to promote healthy homeownership during an unprecedented liquidity crisis.""
Ashley explained that Lend America's servicing initiative is designed to get borrowers into the right mortgage solution in order to reduce the chances of default and preserve the value of the mortgage asset. Ashley also attributes the company's significant increase in servicing assets to the surge in borrowers looking to refinance and take advantage of lower rates, coupled with the company's structured refinance model, which leverages a B2B relationship model with Wall Street investors and banks to refinance their loan portfolios.
Ashley also pointed out that Lend America's servicing portfolio has ""zero legacy issues"" associated with adjustable rate or subprime mortgages, as it is comprised of 100 percent fixed-rate government-insured mortgages originated at close to historical low interest rates. ""We believe this structure enhances the quality of our portfolio and reduces both prepayment and default risks,"" Ashley said. ""Moving forward, we will continue to balance costs, risk, and efficiency in order to build a very profitable and sustainable servicing portfolio.""
Lend America also announced that on April 1, the company expanded its servicing capability by launching a Fannie Mae (FNMA) servicing initiative for conventional borrowers. In order to qualify, Lend America had to undergo a thorough screening process to establish and clarify it could meet Fannie Mae's updated standards. These standards include a higher minimum net worth requirement, among other requirements.
Ashley said Lend America was ""very pleased"" to become eligible to service Fannie Mae mortgages. ""This is another proof point of Lend America’s operational and financial strength and will create additional value for our company and customers,"" Ashley said. ""In this challenging environment, everyone at Lend America continues to be committed to being a part of a forward-thinking organization that can positively impact the residential housing marketplace and help consumers purchase and maintain homeownership.""
""Lend America"":http://www.lendamerica.com is one of New York’s largest privately owned direct lenders and has served the residential mortgage marketplace for over 20 years. The company also has a direct-to-investor exit strategy solution to help Wall Street firms and hedge funds quickly monetize their residential mortgage portfolios.

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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