Industry News

Ameriquest may refund $295 million in alleged overcharges

Real estate loan company probed by 33 states

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Ameriquest Mortgage Co. may overhaul its business practices under the eye of an outside monitor to settle allegations by 33 states that it overcharged its home loan customers, according to a draft of the settlement obtained by the Los Angeles Times. The proposed deal includes a payment of $325 million – $295 million to repay borrowers and $30 million to cover the cost of the states' investigation, according to a copy of the proposal obtained by the Times. It would be the second-largest settlement of its kind, after Household International's $484 million agreement in 2002 with attorneys general for all 50 states, the Times said today. State officials who negotiated for months with the Orange, Calif.-based lender had hoped that both sides would approve the deal by the end of this week, media reports said. But the current version, the fifth revision of the deal, was written by the states, and Ameriquest isn't satisfied yet, Iowa Atty. Gen. Tom Miller, the leader of the multistate ...