Widspread appraisal fraud threatens America's homeowners

Ameriquest Payments May Be Near

Thursday, February 08, 2007

by David Flaum

flaum@commercialappealcom

The checks aren't in the mail yet, but details of the year-old settlement for repaying some Ameriquest mortgage customers indicate the payment day may be nearing.

Early last year, California-based Ameriquest Mortgage Co. and related firms agreed to pay customers $295 million and change their lending practices. That came after attorneys general in the District of Columbia and 49 states — all but Virginia, where the company does no business — investigated the company's lending practices.

Under terms of the settlement agreement, the money will be divided into two funds — $175 million will go to people who borrowed from an Ameriquest company from Jan. 1, 1999, to April 1, 2003. and $120 million will be paid through the states in proportion to the number of borrowers they had getting loans from Jan. 1, 1999, to Dec. 31, 2005.

"If you're eligible, you'll be sent a notice letter in April 2007 that will tell you the minimum dollar restitution payment you may receive," said a note on a Web site set up by the settlement administrator, Rust Consulting of Minneapolis.

"To accept your payment, you must sign and return, by the deadline indicated in the letter, a release form that will be included with your notice letter," the note said.

People won't give up their rights to challenge a foreclosure if they sign the letter, the consultants said.

AMERIQUEST MULTISTATE SETTLEMENT

Amounts: $295 million for borrowers, $30 million for states to cover investigation costs.

Agreement made: Jan. 23, 2006, with attorneys general of 49 states and District of Columbia.

Notices to be sent to eligible borrowers: April 2007.

Deadline for return: To be indicated in notice.

The note did not indicate when people who sign letters may get their money.

In Tennessee, about 2,500 borrowers may be eligible for payments totaling $2.5 million, said Sharon Curtis-Flair, spokeswoman for the state attorney general.

About 1,400 Arkansans would be in line to get a total of $670,000, said Gabe Holmstrom, spokesman for the Arkansas attorney general.

No figures were available from Mississippi.

Although the agreement doesn't require Ameriquest to change terms of mortgages covered by the settlement, the company agreed to a long list of changes in its lending practices.

Those range from charging the same rates of interest to borrowers in similar circumstances to not proposing refinancing in the first two years of a loan.

"Our assessment is that they are complying," said Bob Brammer, spokesman for Iowa Attorney General Tom Miller, one of the lead lawyers in the case.

— David Flaum 529-2330

Web site: http://www.demos-usa.org/pub485.cfm

http://news.corporate.findlaw.com/prnewswire/20050329/29mar2005184525.html

Brought to you by:

The Bank Fraud Victim Center

Our mission is to educate homeowners about predatory lending practices, bank fraud and the legal options available to them.

website: http://mortgage-home-loan-bank-fraud.com

We believe that if you don't know your rights, you don’t know your options.

To learn how we can help you Click Here

Find out if you are a victim of predatory lending practices:

To Get a Free PreliminaryConsultation Click Here

| About Us | Contact Us |

Bank Fraud Victim Center