Ameriquest Settles Lawsuit Involving Appraiser Pressure
In order to settle a lawsuit that alleges it overcharged customers and urged real estate appraisers to increase property values in 33 states, Ameriquest Mortgage Co. would pay $325 million and change some business practices, according to the Los Angeles Times.
Under the terms obtained by the Times, Ameriquest loan agents would be barred from discussing property appraisals with the people conducting the assessments. The company would also be prohibited from paying workers to increase loan fees and interest rates, and from adding penalties for early loan repayments.
In citing a copy of the settlement, the paper said that the company would repay $295 million to borrowers and an additional $30 million to cover the cost of the investigation. However, Chris Orlando, a spokesman for Ameriquest, said the version of the settlement obtained by the Times was "partial and incomplete" and doesn't "reflect the current state of discussions." He added, "We're working hard with the attorneys general to reach a comprehensive agreement that's good for consumers and fair to the company."
According to the Orange County (Calif.) Register, the current version is the fifth revision of the settlement, said Iowa Attorney General Tom Miller, leader of a multistate task force. Ameriquest had previously disclosed that it set aside $325 million to cover a settlement with the attorneys general.
NOTE: A friend sent me this on January 4, 2006. Not sure where he got it, but it's an expensive way of doing business.
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