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State To Revoke CA Mortgage Broker's License
Says company engaged in deceptive lending practices
The Associated Press
July 23, 2008, 4:03 AM PDT
Washington state plans to revoke the
license of a California mortgage broker.
The state Department of Financial Institutions says an
investigation has found Paramount Equity Mortgage, Inc. engaged in
deceptive lending practices.
In a statement issued Tuesday, the state says it also will fine
the firm $500,000 and require restitution for Washington borrowers.
Paramount is accused of charging and collecting unearned fees,
charging consumers to buy down interest rates without actually
reducing rates, failing to make required disclosures and making
state and federally required disclosures in a deceptive manner.
In a statement, Paramount denied any wrongdoing, saying the
state's allegations are false and that it plans to appeal.
Paramount said it plans to defend its ability to continue
offering mortgages to Washington residents.
The company made more than 1,700 mortgage loans to Washington
borrowers in 2007, collecting more than $8.7 million in fees.
Copyright © 2008, The Associated Press
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