The Federal Housing Administration said late Monday it suspended Equitable Trust Mortgage Corp., a Baltimore City and Baltimore County based lender, from originating or underwriting new loans through its lending program.
The FHA claims the Baltimore City and Baltimore County lender overcharged 37 borrowers on broker and loan-origination fees. The fees exceeded what the U.S. Department of Housing and Urban Development allows, the FHA said. Nearly 70 percent of those borrowers were minorities, the FHA added.
In 21 of the cases, Equitable failed to properly disclose all loan-origination fees and lender fees, the FHA said.
“It is critical that FHA lenders apply our standards and do not overcharge borrowers,” FHA Commissioner David Stevens said in a statement. “The fact that a disproportionate number of these borrowers were minority families is also troubling. I am fully committed to protecting consumers and the fiscal health of the FHA.”
Government-backed FHA loans provide market- or near-market-rate mortgages to borrowers who might typically be classified as subprime or high risk.
An employee who answered a phone call to Equitable Trust Monday evening said no one was available for immediate comment.
Nick Gioia | www.ngrealtygroup.com