WA state to revoke license of CA mortgage company

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.