Michigan AG Cox Announces Ameriquest Settlement

July 12, 2007 -- LANSING - Michigan Attorney General Mike Cox today announced that 27,858 Michigan consumers are eligible for $13.8 million in restitution from Ameriquest Mortgage Company and its related companies as part of a $325 million national settlement stemming from predatory lending lawsuits against the company.

"Today's announcement is a victory for consumers and should serve as warning to all companies in the mortgage industry that predatory lending will not be tolerated," said Cox. "For most families, purchasing a home is their single largest investment, and I will not tolerate companies that take advantage of Michigan citizens."

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Letters and claim forms were mailed to eligible Michigan consumers during the week of July 9, 2007. To participate in the settlement and receive restitution, consumers must mail completed and signed forms to the settlement administrator by September 10, 2007.

The forms mailed to each consumer will indicate the minimum payment the consumer can expect to receive. However, the exact amount could be larger, depending on how many eligible Michigan consumers decide to participate in the settlement.

Attorney General Cox encouraged consumers to study the claim forms and information and reply as soon as possible.

Consumers who opt to receive the restitution payments relinquish their right to file lawsuits against Ameriquest related to the loans covered by the settlement. Therefore, consumers are encouraged to consult with a private attorney before deciding whether to participate in the settlement. However, consumers who participate in the settlement do not give up any claim they may otherwise raise if their home goes into foreclosure.

Under the settlement, more than 481,000 borrowers who were customers of Ameriquest Mortgage Company, Town and Country Credit Corporation, and AMC Mortgage Services, Inc. (formerly known as Bedford Home Loans) between January 1, 1999, and December 31, 2005, are eligible to receive the restitution payments. Restitution payments nationwide are expected to total more than $300 million.

A pamphlet of "Frequently Asked Questions" was mailed with the claim form and provides additional information about the restitution process for eligible consumers.

Consumers can also obtain detailed information about the settlement and their eligibility for restitution by going to the Settlement Administrator's Web site: www.ameriquestmultistatesettlement.com. Consumers also may contact the Settlement Administrator at 800-420-5875. (Hearing-impaired persons may call 866-494-8274.)

The settlement resolves allegations by the Attorneys General and banking and finance regulators of the District of Columbia and every state except Virginia (where Ameriquest did not do business) that Ameriquest and its affiliates, among other things, misrepresented and did not adequately disclose the terms of home loans, such as whether a loan carried a fixed or an adjustable rate; charged excessive loan origination fees and prepayment penalties; refinanced borrowers into improper or inappropriate loans; and improperly inflated appraisals used to qualify borrowers for loans.

Source: Michigan Attorney General