Lender settles with HUD over fees

Equitable Trust Mortgage Co. to pay $277,500 civil penalty

EMBRACE. FOCUS. EXECUTE. Build your 2019 roadmap to success with 4,000+ real estate leaders.
Inman Connect New York | January 29 - February 1, 2019

Baltimore, Md.-based lender Equitable Trust Mortgage Corp. has approval to make FHA-guaranteed loans again after settling charges that it charged borrowers excessive loan origination fees. The Federal Housing Administration suspended ETM’s FHA approval on Dec. 7 for allegedly overcharging 37 borrowers for broker and loan origination fees.

Without admitting fault or liability, ETM has paid the Department of Housing and Urban Development a $277,500 civil penalty, HUD said in a press release. ETM also agreed to refund $147,600 to the 37 borrowers, who will receive refunds ranging from $500 to $9,315, HUD said.