Ameriquest Settlement Facts

• At the time of the settlement, Ameriquest Mortgage Company was the largest privately held retail mortgage lender in America and the largest subprime lender by volume. The company is headquartered in Orange County, California.
  
  
• Ameriquest had 26 locations licensed to do business in Washington State.
  
  
  • Ameriquest Mortgage Company: 17
    
    
  • Town & Country Credit Corporation: 1
    
    
  • AMC Mortgage Services, Inc. f/k/a Bedford Home Loans: 8
• Ameriquest settled with 49 states and the District of Columbia (the company has never done business in Virginia) over allegations of unfair and deceptive lending practices. Ameriquest denies all allegations but has agreed to implement tough new standards to prevent the alleged practices from occurring in the future.
  
  
• Ameriquest has paid $295 million into a settlement fund, which will be distributed by an administrator to eligible consumers in payment of restitution. Restitution packets have been sent to eligible Ameriquest borrowers. In order to participate in the settlement, borrowers must return the signed release forms by Sept. 10, 2007. It is anticipated that restitution checks will be mailed out by the administrator sometime before the end of the year.
  
  
• Ameriquest also paid the states $30 million for attorneys’ fees and costs involved in the investigation and settlement negotiations. In recognition of Washington’s leading role in the settlement, our state’s share of the $30 million was $2.5 million. The Attorney General’s Office kept $500,000 to recover expenses. The remaining funds were combined with those received by DFI and put back into to the restitution pool. That additional $1.85 million, with interest, increases the additional amount payable to Washington consumers by almost $2 million.
  
  
• The settlement impacts Ameriquest loans taken out between January 1999 and December 2005. In Washington, Ameriquest made 13,495 loans to residents totaling $2,706,469,252. This is roughly 2.54% of the $106 billion in loans made nationally during this time period.
  
  
• The company will reimburse Washington State approximately $2.5 million for investigation and legal costs. The majority of this money will be added to the restitution pool for Washington consumers harmed by Ameriquest's actions.
  
  
• Washington’s share of the national settlement fund is approximately $7.1 million. With the addition of amounts set aside by DFI and the AGO from Washington’s share of attorneys’ fees and costs, the total distribution to Washington borrowers will be about $9.07 million.
  
  
• Ameriquest will pay for a monitor, who will provide periodic reports on Ameriquest’s compliance with the settlement through Dec. 31, 2010.
  
  
• Letters and claims forms have been sent to eligible Washington borrowers. They have until September 10, 2007, to sign and return the forms in order to receive their restitution award. Individuals who believe they are eligible for the settlement but who have not received a mailing from the settlement administer, may call the administrator at 1-800-420-5875. (Hearing-impaired persons may call 1-866-494-8274.)
  
  
• Included with the claim forms is a list of Frequently Asked Questions, which should answer most questions regarding the settlement. A copy of the FAQs also appears on the settlement website at www.ameriquestmultistatesettlement.com
  
  
• By signing and returning the settlement claims forms, borrowers are giving up the right to file lawsuits or participate in class actions against Ameriquest related to the loans covered by the settlement. Therefore, eligible individuals are encouraged to consult with a private attorney or, if they qualify, a legal services attorney before deciding whether to participate in the settlement. Consumers who participate in the settlement do not give up any claim they may otherwise raise if their home goes into foreclosure, however.
  
  
• Ameriquest has instituted significant changes in its business practices and relations with consumers.

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