Paramount Equity Mortgage has been charged with deceptive lending practices by the Washington State Department of Financial Institutions.

KGW

Paramount, which acts as both a mortgage broker and a mortgage banker, is based in California but operates actively in both Oregon and Washington.

On Tuesday, the State of Washington's DFI announced its intention to revoke Paramount's license to do business in the state, and to fine the firm $500,000 and also to require restitution for Washington borrowers.

"Paramount failed to make proper disclosures in almost every loan we reviewed," said Deb Bortner, Director of DFI's Division of Consumer Services.

The state cited radio commercials that also air on Oregon radio stations featuring Hayes Barnard, Paramount's President, as misleading. According to Bortner, Paramount is not a bank, the fees they charge more than cover the cost of the advertised 'free' appraisal, and the company's advertised guarantee for the lowest rates and fees "cannot be substantiated."

According to the Washington DFI, Paramount made more than 1,700 mortgage loans to Washington borrowers in 2007, and collected more than $8.7 million in fees.

More: Read DFI Release