Imploded: Lend America / Lending Key

Citing a host of violations in a press release on 2009-11-30, FHA announced it had withdrawn its approval of Ideal Mortgage Bankers, doing business as Lend America and Lending Key, to originate or underwrite FHA-insured loans effective immediately. From the same report we learn the Government National Mortgage Association (Ginnie Mae or GNMA) "defaulted Lend America," which means they are no longer able to issue Ginnie Mae securities. Since Lend America had become a specialist in originating FHA loans and selling them to GNMA, the agencies' actions effectively shut the company's operations down.