Ideal Mortgage Bankers Ltd., a defunct company that used the brand name Lend America, was refinancing certain customers without paying off their existing liens, according to Robert Lotstein, a veteran industry attorney.
Lotstein, a managing attorney with Mortgage Banking Advisors PLLC, has clients that did business with Lend America, which last week was banned from making Federal Housing Administration loans and ceased operations.
Some Lend America borrowers "will get a call from their old lender asking where the payment is," Lotstein said. He could not say how many customers might be having this problem.
A spokesman for the Melville, N.Y., company said it is trying to rectify the problem.