A Few Days After HUD Suspension, Baltimore Lender Settles

Equitable Trust Mortgage Corp. has agreed to pay a $277,000 fine and reimburse 37 FHA borrowers as a part of a settlement with the Department of Housing and Urban Development. The agreement means the Baltimore-based nonbank is once again allowed to originate government-backed loans. The agency suspended ETM on Dec. 7 for improperly charging 37 borrowers excessive loan origination fees. However, in settling, the company did not admit fault or liability. In addition to paying the civil money penalty, ETM has agreed to refund the overcharges to the 37 borrowers. The individuals will receive refunds ranging from $500 to $9,135. The total amount repaid to borrowers will be $147,589, HUD said. "The settlement agreement imposes a significant penalty on ETM for violating HUD requirements, but also provides the wronged borrowers relief in these tough economic times," said FHA commissioner David Stevens.