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The FHA is expected to announce steps today to raise reserves, tighten standards and crack down on poor performing lenders. For Lend America (aka Ideal Mortgage Bankers), there were allegations of submitting false documents, but I expect further approval cancellations just for poor performance. From Ellen Yan at Newsday.com: Mass layoff at LI home lender amid federal probe (ht Mike in Long Island) Melville-based Lend America closed its loan-making operation Tuesday and laid off most of its 600 workers, a day after federal officials revoked its license to make loans insured by the Federal Housing Administration. FHA-backed loans made up at least 90 percent of the company's business. ... Last year, Lend America closed 6,986 loans, or $1.36 billion in loans, Lovallo said, and for this year

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