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Equitable Trust Mortgage Corp. - Retail - Agency, FHA/VA, Commercial
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2009-12-09
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stories: hud.gov, dsnews.com, citypaper.com
Update - 2009-12-11: Equitable Trust Mortgage Corp. has reached a settlement with HUD, agreeing to "pay a civil money penalty of $277,500" and "refund $147,590 in brokers' fees improperly charged to 37 borrowers" according to the report by Reuters. HUD's press release indicated the affected borrowers could "expect to receive refunds in amounts ranging from $500 to $9,135."
Original Ailing Post - 2009-12-09: On 2009-12-07, the U.S. Department of Housing and Urban Development (HUD) announced the immediate suspension of Equitable Trust Mortgage Corp. from the underwriting and origination of FHA-insured loans. HUD's Mortgagee Review Board found that the company had been improperly overcharging for broker and loan origination fees, and had failed to properly disclose all loan origination fees to a number of borrowers. Additionally, HUD's Office of Inspector General (OIG) is investigating the company's lending practices. The company has 30 days from Monday's announcement to request a hearing before an Administrative Law Judge.
Equitable Trust Mortgage Corp. is based in Baltimore, MD and employs approximately 75 people according to information available via Manta.com. FHA-insured mortgages accounted for around 38% of the company's total residential loan production in 2008 which averaged more than $26 million per month. Per their web site, Equitable Trust Mortgage Corp. also offers Agency, VA and commercial loans. CityTownInfo lists six offices in Maryland and one additional branch in Myrtle Beach, SC.
CityPaper reported that OIG subpoenaed records from Equitable Trust Mortgage Corp. over two years ago. On 2007-06-27, CityPaper had an interview with co-owner William Scott Lucas, one of four partners in the firm, who "sound[ed] annoyed by the government's inquiry." We attempted to reach Mr. Lucas and were told the company had "no comment at this time."
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mortgagemess at 12:47 2009-12-09 said:
To be honest...HUD has never been good at cleaning house until it was way to late into a problem...if the FED needs a audit, HUD/FHA should be right along with it! Permalinkhollycrap at 23:47 2009-12-11 said:
HUD REVERSES THE SUSPENSION. BOUGHT FOR 1/4 MILLION DOLLARS OH YEA THEY ALSO GOT 147,000 FOR THE 37 BORROWERS WHICH IS A RETURN OF THE OUTRAGEOUS BROKER FEES. 1. OH, BUT THESE BORROWERS ARE STILL STUCK WITH THEIR HIGH RATE FOR MONTH AFTER MONTH AFTER MONEY - 30 YEARS 2. ACCORDING TO HUD CONNECTION THEY DID OVER 2000 LOANS HOW MANY DID HUD EXAMINE? WHAT ABOUT THE OTHER 1900? THE MORAL OF THE STORY: MAKE MILLIONS ON THE BACKS OF THE BORROWERS, PAY A FRACTION TO HUD... JUST A COST OF DOING BUSINESS EQUITABLE IS DANCING ALL OVER THEMSELVES - THEY ARE BACK IN BUSINESS PermalinkStephenF at 09:51 2009-12-12 said:
Is Equitable Trust a Broker or a BANKER? To be as despicable as they are they must be a broker huh??? Permalinkthe21kid at 02:10 2009-12-13 said:
Equitable Trust Mortgage Corp. is a lender and has the ability to broker certain loan types. A suspension by HUD still grants the lender the ability to appeal. Apparently Equitable presented adequate information for HUD to reverse the suspension. I wonder if the other 6 suspended lenders or 270 removed lenders, as indicated by Reuters, will be able to do the same? http://www.reuters.com/article/idUSN0717810120091207[/b] Permalinkadd a comment | go to forum thread
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