Judge Denies FHA Prohibition Against Lend America
A federal judge denied a Justice Department request to issue a temporary restraining order against Ideal Mortgage Bankers, parent company of Lend America, that would have prevented the lender from originating Federal Housing Administration (FHA)-insured loans. The judge's denial comes after the Justice Department, on behalf of the Department of Housing and Urban Development (HUD), filed a civil suit this week against Ideal. The suit alleges Ideal improperly certified borrowers for more than $14m in FHA-insured mortgages. In a press statement, Ideal Mortgage Bankers said: “Lend America is pleased to announce that today the court denied the Government’s request for an order prohibiting Lend America from originating FHA insured loans." Ideal added: "We look forward to continuing our partnership with HUD and our mission of providing affordable financing for those borrowers in need.” A spokesperson for the US attorneys office handling the case declined comment. Write to Austin Kilgore.