It has been reported that the Federal Housing Administration has banned Michael Ashley, who was formerly the head of Melville, NY-based Lend America, from originating, marketing or submitting claims for FHA mortgages. In late 2009, Lend America ceased operations, facing fire for allegedly violating government underwriting guidelines.
At the time, Lend America had just, the day prior, been stripped of its FHA approval for the lender to make loans under the FHA's home mortgage guarantee program. At the time, Michael Ashley was the company's executive vice president and chief business strategist.
The report from Reuters indicates that in addition to the restrictions above, Ashley is barred from being employed in any capacity for any company connected to the FHA. That includes even being a consultant or strategist.
Michael Ashley had previously pleaded guilty in 1993 to conspiracy to commit wire fraud. That guilty plea came in connection with instances of mortgage fraud.
However, in an interview, Michael Ashley said the guilty plea was all about getting the issue behind him. "They go after the entire family. They came after me; I was young and inexperienced, newly married, baby on the way. On my attorney's advice, I pleaded guilty to mail fraud to get it behind me."
Meanwhile, last October, and prior to the folding of Lend America, Benton Campbell, U.S. Attorney for the Eastern District of New York alleged that Ashley had violated regulations throughout his career.
Reuters stated that the judgment was handed down on March 3. The report added that Ashley did not either admit or deny liability regarding the allegations.
Written by Michael Santo
HULIQ.com
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