American Mortgage News

Higher loan limits on FHA insured loans offer tangible solution for new set of borrowers

Company now offers $1,200 “stimulus package” to provide additional assistance to borrowers

MELVILLE, N.Y. – March 12, 2008 – Lend America, a leading privately owned direct-to-consumer residential mortgage lender with a core focus on originating government-insured loans, announced in conjunction with the new Federal Housing Administration (FHA) higher loan limits now in place, which will help a whole new class of borrowers qualify for an affordable mortgage, the Company has launched an additional “stimulus package” to provide further assistance to consumers dealing with the current mortgage crisis. At the end of 2007, nearly 3 million homeowners were behind on their mortgages, according to the Mortgage Bankers Association, and Lend America’s “stimulus package” is another proactive response by the Company to help these struggling borrowers.

Mandated by the Economic Stimulus Package of 2008, the Federal Housing Administration can on a temporary basis insure home loans of up to $729,750 from the previous cap of $362,790 in high cost areas of the country, such as the metropolitan New York area, and the Los Angles and San Francisco areas in California. The new limits are due to expire at the end of the year. To look up the new FHA mortgage limits for an area in the country, or/and then list those by state, county, or Metropolitan Statistical Area please click on the following link https://entp.hud.gov/idapp/html/hicostlook.cfm
Michael Ashley, Chief Business Strategist of Lend America commented, “Against a backdrop of lower interest rates, this increase in FHA loan limits is a significant development for both consumers and communities struggling with the current credit crisis and the worst housing slump in more than two decades. These FHA “mini jumbo’ fixed-rate insured loans offer an affordable solution for existing and potential homeowners, while returning liquidity into the home financing marketplace which we believe will help to stabilize housing prices.” Mr. Ashley added, “Lend America’s leadership in FHA lending places us in a unique position to be a key resource for consumers throughout the country, while also expanding the Company’s lending franchise and accelerated our production volume.”
To continue to meet this opportunity, Lend America has hired well over 300 employees from firms such as, American Home Mortgage, New Century, Delta Funding as well as others over the last year. The majority of these new hires are high quality loan officers which have been trained in FHA lending regulations and Lend America’s consultative approach. The Company is now licensed to do business in 33 states, recently entering, Oregon and New Hampshire, and anticipates being approved to originate in 14 additional states within 90 days.

Mr. Ashley stated, “Two years ago, Lend America had the vision to adjust its business model and build a centralized retail channel that focuses on originating primarily FHA loans and an educational based marketing platform. This strategy proved correct as we are now experiencing significant growth because we were prepared to offer consumers relevant mortgage solutions. We closed 2007 with record originations and this trend continues into 2008, as our production volumes have increased over 300% on a year-over-year basis during the first two months of 2008, and is now essentially the top FHA lender in New York.”

To further help borrowers, Lend America is launching its own “stimulus package.” This stimulus package is designed for FHA refinances and is one of the first of many proactive steps Lend America is taking to provide consumers with financial relief during this mortgage crisis. Homeowners who refinance with Lend America using FHA financing, will receive a $1,200.00 housing stimulus closing cost credit, or in some cases, cash at closing. But the savings go well beyond this credit. A FHA loan comes with a low fixed rate and homeowners are still able to take cash out, consolidate debt, reduce their mortgage term, convert their adjustable rate mortgage into a fixed rate, as well as more. With the increased in FHA loan limits, there is more flexibility for borrowers than ever before, especially since home equity levels have dropped significantly over this past year.

Mr. Ashley concluded, “A key driver of Lend America’s growth has been our series of educational television programming that helps consumers understand the safety and security of available FHA solutions. In the month of February, Lend America received more than 40,000 inquiries through the program’s 1-800-FHA-FIXED telephone hotline, further illustrating the need and opportunity for government-insured or FHA loans. We are now launching an additional nationwide “short form 60 second ” ad campaign on national television to help educate consumers on our new” stimulus package” and further build Lend America’s brand in the marketplace.”

About Lend America
Lend America, a National Mortgage Banking Organization and one of New York’s largest privately owned direct lenders, has proudly served the residential mortgage marketplace for over 20 years. The company is one of the most successful direct to consumer lenders in the United States and is the region’s largest and most well known FHA direct lenders. Lend America is also the originator of successful nationwide broadcast television educational seminar programs. Lend America offers a wide range of home purchase and refinance programs to meet their clients’ individual requirements. Lend America employs approximately 650 employees and is located at 201 Old Country Road, Melville, New York, 11747. For more information on Lend America, visit www.lendamerica.com

MEDIA CONTACTS:
John Lovallo
Telephone: 203-428-3215
Email: jlovallo@soleburycomm.com

Mary McPhail, Chief Marketing Officer
Lend America
Telephone: 631-944-6883
Email: mmcphail@LendAmerica.com