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A year-and-a-half after a settlement was reached in a
class-action suit against Ameriquest Mortgage Company, Illinoisans can now
get their share.
Under the terms of the settlement, reached in January
2006, Ameriquest must pay $325 million in restitution to customers who
accused the Orange, Calif.-based company of employing illegal lending
practices, including pressuring borrowers to refinance or close on loans
whose terms were altered from those proposed earlier, inflating appraisals,
failing to complete funding in a timely manner, and providing false
information about interest rates. Attorney General Lisa Madigan mailed letters last
week to eligible residents, who must respond by Sept. 10. Nearly a half-million mortgage holders who took out
loans with Ameriquest, AMC Mortgage Services, Inc., and Town and Country
Credit Corp. (not affiliated with Town & Country Bank of Springfield)
between Jan. 1, 1999 and Dec. 31, 2005 qualify to receive restitution.
Approximately 22,000 borrowers will split
Illinois’ portion of the settlement, which equals more than $14.5
million. The average payout to consumers will be about $600, according to a
Madigan spokeswoman, Robyn Ziegler. In November 2004, Gov. Rod Blagojevich welcomed
Ameriquest Mortgage Company when the Orange, Calif.-based lender announced
a major expansion of its loan servicing operation to suburban Chicago. Calling the move a “strong validation” of
the state’s effort to spur economic development in northwest
Illinois, Blagojevich offered $25 million in tax credits to Ameriquest,
which promised to create at least 2,100 new jobs and possibly more in
Schaumburg [See Roland Klose, “Ameriquest and Illinois,” Jan.
27, 2005]. Madigan, however, doesn’t think so highly of
the company, whose behavior she called “deceptive” and
“unfair.”
“Ameriquest’s conduct put people at risk
of losing their homes,” Madigan says. In a separate discrimination lawsuit filed last week,
the National Association for the Advancement of Colored People identifies
Ameriquest as one of 14 lending corporations who allegedly charge
African-Americans higher interest rates than white borrowers — even
when risk and creditworthiness were the same.
Contact R.L. Nave at rnave@illinoistimes.com.
This article appears in Jul 12-18, 2007.
