Jul. 23, 2008 at 10:35am

State targets mortgage broker

An examination conducted by the Department of Financial Institutions concluded that Paramount Equity Mortgage, Inc., a licensed mortgage broker headquartered in California, has reportedly engaged in a number of deceptive lending practices. As a result of the findings, DFI has given notice that it intends to revoke Paramount's license to do business in Washington, fine the firm $500,000 and require restitution for borrowers.

Paramount is accused of charging and collecting unearned fees, charging consumers to buy down interest rates without actually reducing the rate, failing to make required disclosures and making state and federally-required disclosures in a deceptive manner.
 
Paramount, which acts as both a mortgage broker and as a mortgage banker, made more than 1,700 mortgage loans to Washington borrowers in 2007, collecting more than $8.7 million in fees.

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