Idahoans Will Receive More Than $432,000 in Restitution From Ameriquest Mortgage

December 14, 2007 -- (Boise) – More than $432,000 in restitution payments will be mailed to 455 Idahoans today as a result of a multi-state settlement with Ameriquest Mortgage, Idaho Attorney General Lawrence Wasden said. The settlement resolved allegations by 49 Attorneys General and the District of Columbia that Ameriquest, the largest sub-prime lender, used predatory lending practices.

“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,” Attorney General 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.”

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The states also alleged Ameriquest employees provided inadequate disclosure of prepayment penalties; discount points and other loan terms; unsolicited refinancing offers that did not adequately disclose prepayment penalties; improperly influenced and inflated appraisals; and encouraged borrowers to lie about income or employment to obtain loans. Ameriquest denied those allegations. However, the company agreed to adopt new standards to prevent what the states alleged were unfair and deceptive practices.

The deadline to file a claim was September 10, 2007. If an eligible recipient of the restitution payment has not received a check by December 31, 2007, they should contact the settlement administrator at (800) 420-5875 or by e-mail at: Ameriquest@rustconsulting.com.

Source: Idaho Attorney General