FHA strips Ideal Mortgage of approval, sets penalty

NEW YORK Nov 30 (Reuters) - The U.S. Federal Housing Administration on Monday said it withdrew approval of Ideal Mortgage Bankers for originating home loans under the government program, citing numerous abuses.

The FHA imposed civil money penalties of $512,500 against Ideal and said the U.S. Attorney's Office for the Eastern District of New York is pursuing a civil fraud injunction against the company and a senior manager.

Ideal Mortgage does business as Lend America and Lending Key, the FHA said in its statement.

(Reporting by Al Yoon; Editing by Dan Grebler)

((albert.yoon@thomsonreuters.com; +1 646-223-6347; Reuters Messaging: albert.yoon.reuters.com@reuters.net))