Navigation


Be notified of
page updates
it's private
powered by
ChangeDetection

See companies still doing business in this state.

Current news for this company:


Equitable Trust Mortgage Corp. - Retail - Agency, FHA/VA, Commercial

2010-01-22

Comment on this article | Subscribe by email!

stories: hud.gov, dsnews.com, citypaper.com

There's been no formal public announcement, but an internal memo we obtained indicates Equitable Trust Mortgage Corp. has ceased funding loans. Branch managers were instructed to give all employees an attached "Separation Notice of Employment" dated 2009-12-15 that made it explicitly clear:

"Unforeseen was the far-reaching impact that the HUD suspension has caused during the past week. This included suspension by all of our warehouse banks and investors and, as of December 15th, 2009, ETMC remains in that state.

As a result, you are separated from employment effective today. There is no provision in the company's policies for transfer, bumping, or reassignment."

The accompanying memo (dated 2010-01-15) indicates a quid pro quo and makes no promises of a return to business as usual." This confirms an anonymous report we received that the company had lost investors and/or warehouse lines as a result of the HUD/OIG inquiry. Reportedly, the company is in the process of setting up broker relationships and will endeavor to continue in that capacity.

Ailing Listing - 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."

Please send us anything you may have to add to this story. Registered users may also post their comments below.


Bookmark and Share


Comments:

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! Permalink
hollycrap 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 Permalink

StephenF 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??? Permalink
the21kid 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] Permalink

hollycrap at 17:58 2010-01-22 said:
the market is bad enough, but... when you do this to yourself:

I had interviewed one of their Manager's of one of their NET BRANCHS.

Here is how it started: "If we can't make at least 4 points and fees we are not interested in having this conversation continue." I terminated the meeting.

they haven't learned a damn thing from the closing of Equitable. they just want to make a killing on a loan. They give our business a bad name and should be closed down ! Permalink

SARA at 20:13 2010-01-24 said:
Hopefully karma won't bring you a "retreat" implode. And there's news on the street that you hired that manager. Permalink

add a comment | go to forum thread

Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.