AmeriQuest to Pay $325 million in Settlement

Published on:
12 September 2006 at 10:20 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00019233-ameriquest-to-pay-325-million-in-settleme/

By Kirstin Downey, Washington Post Staff

State prosecutors and lending regulators in 49 states and the District have reached a wide-ranging $325 million settlement with Ameriquest Mortgage Co., the nation’s largest lender to home-loan borrowers with poor credit, to resolve allegations that the company defrauded and misled consumers.

It is the second-largest consumer protection settlement in U.S. history, following the $484 million predatory lending agreement reached in 2002 with Household Finance Corp.

The Orange, Calif.-based company has also agreed to major changes in how it does business. Its practices will be independently monitored to ensure the company complies.

For this complete story, please visit Mortgage Lender Settles Lawsuit.