Idaho Housing
Some Idahoans Get Restitution in National Ameriquest Settlement
By J. Gelband, 12-16-07
Everyone knows the mess sub-prime mortgages and refinancing caused the country and the state. For a while it seemed that things were continuously going downhill, but there’s a little bright news for some Idaho homeowners who dealt with Ameriquest Mortgage, the largest sub-prime lender.
Idaho Attorney General Lawrence Wasden, finance regulators and 49 other Attorneys General – not Virginia’s AG because Ameriquest didn’t do business in Virginia – and the District of Columbia settled allegations that Ameriquest used predatory lending practices.
Wasden announced that 455 Idahoans will receive more than $432,000 in restitution payments as a result of the multi-state settlement.
“Ameriquest used high-pressure sales tactics on Idaho homeowners who were seeking to consolidate credit card debt and other debt by refinancing into a new home mortgage with overall monthly savings,” Wasden said. “Borrowers who don’t have the best credit ratings may turn to sub-prime loans, which often have higher interest rates and other costs.”
Predatory lending practices were only part of the allegations. The AGs also alleged that Ameriquest employees engaged in unfair and deceptive procedures, including providing inadequate disclosure of prepayment penalties, discount points and other loan terms, offering unsolicited refinancing that did not adequately disclose prepayment penalties, improperly influencing and inflating appraisals, encouraging borrowers to refinance even when refinancing didn’t offer any real advantage to the borrowers, and encouraging borrowers to lie about income or employment to obtain loans.
Click here to read the complete list of lending practices that the states investigated and to see the definition of “Lending Practices” in the Settlement Agreement.
Ameriquest denied the allegations but agreed to adopt new standards.
Overall, the settlement added up to $295 million. Borrowers who were eligible for a payment were mailed notice letters and release forms. Those eligible must have had signed and returned the forms by September 10, 2007, and last Thursday Ameriquest sent the checks.
If you sent away for your restitution check and haven’t received it within 7 to 10 days, call the Settlement Administrator at 1-800-420-5875.
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