Lend America Tried to Sell Servicing Rights

The embattled Lend America, Melville, N.Y., has been trying to sell a large package of Government National Mortgage Association servicing rights but has yet to close on a deal, according to investment banking sources. The company and an investment banker believed to be brokering the sale declined to comment. Sources say the portfolio of GNMA rights could be as large as $1 billion. Last week the Department of Justice and Department of Housing and Urban Development sought a court injunction to ban the firm from originating FHA loans, accusing it of fraud in regard to $14 million in originations. The court ruled against the injunction. Lend America's spokesman stressed that it is business as usual at the company. "The phones are ringing and they're still doing business," he said.