FHA Settles With Equitable Trust Mortgage

The Federal Housing Administration (FHA) has reached a settlement agreement with Equitable Trust Mortgage Corp. (ETM) of Baltimore, terminating the suspension imposed last week.

FHA suspended ETM's HUD/FHA approval because ETM improperly overcharged 37 borrowers for broker and loan origination fees in excess of what the U.S. Department of Housing and Urban Development (HUD) currently allows.

By settling without admitting fault or liability, ETM has paid HUD a civil money penalty in the amount of $277,500 and has agreed to refund the broker fee improperly charged to 37 borrowers. ETM will be contacting the 37 borrowers in an effort to refund the fees, and these borrowers shall expect to receive refunds in amounts ranging from $500 to $9,135. The total amount repaid to borrowers will be $147,589.81.

"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," says FHA Commissioner David H. Stevens.

SOURCE: Federal Housing Administration

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