Former Lend America president, Michael Primeau, has been suspended by the Department of Housing and Urban Development from doing any business with the department, upon his admission to a wide-scale mortgage fraud scheme.
Ideal Mortgage Bankers, doing business as Lend America and Lending Key, received a cease and desist order in 2009 when its Federal Housing Administration approval was revoked and Ginnie Mae approval was terminated due to FHA violations. Prior to its closing operations, Lend America was an active reverse mortgage lender, having closed 250 HECMs in fiscal year 2009.
Lend America has admitted to a scheme in which Primeau directed employees of the company to divert mortgage funds intended to pay of 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.”
Written by Elizabeth Ecker