The former head of LendAmerica has been banned from originating, marketing or submitting claims for FHA mortgages, according to a recent Reuters report.
Michael Ashley is also never able to seek employment in any form for any company connected to the FHA, not even as a strategist or consultant.
Three months ago, the Melville, NY-based LendAmerica ceased its operations for allegedly breaking government underwriting requirements.
Michael Ashley was the company’s executive vice president and chief business strategist at the time.
Ashley helped to grow Lend America as one of the most abundant producers of FHA backed loans.
The company’s expansion came at a time when borrowers’ had limited credit options and LendAmerica needed to rely heavily on the FHA in order to refinance costly loans.
Then in October, the FHA accused LendAmerica of abuses, including failing to document borrowers’ income and creditworthiness and submitting to HUD false documents and loans that did not meet requirements.
He did not admit or deny accountability concerning the allegations
Back in 1993, Ashley plead guilty to conspiracy to commit wire fraud in connection with instances of mortgage fraud.