The U.S. government on Tuesday accused a New York-based mortgage lender, Lend America, of committing fraud and asked a federal judge to shut down its government-backed loan operations.
The Justice Department said its complaint alleges that Lend America falsely certified to the Department of Housing and Urban Development that borrowers who received over $14 million in loans met HUD's lending requirements when the defendants knew they did not.
The Federal Housing Administration, a division of HUD, said it is seeking to shut down Lend America's government-backed loan operations.
"Any FHA-approved lender that seeks to do business with us must follow our standards, it's just that simple," said FHA Commissioner David Stevens. "If we determine that our partners are not playing by the rules, they'll cease being our partners."
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Oh my! What a surprise! Oh? What are we going to do? Where are the "mega-banks in the sky" investigations?
