Investigation and potential class action lawsuit against Ameriquest and its related companies for predatory and deceptive lending practices.
Consumers have reported a host of dubious practices on Ameriquest's part. These reports indicate that Ameriquest over appraised home values, inflated borrowers incomes, charged higher interest rates than originally promised, placed customers in adjustable rate mortgages after promising a fixed rate, and inserted prepayment penalties after previously stating that such a penalty would not apply.
These practices were typically employed to trap customers in a loan that was worth substantially more than the property being mortgaged. As customers attempted to refinance with a different company, they could not find a willing lender because the amount of the Ameriquest loan was vastly greater than the actual value of the property.
The firm is also investigating potential claims against Ameriquest arising under the federal Truth in Lending Act (TILA) where the lender did not properly complete or even provide loan customers vital documents outlining their rights to cancel their loans after signing the loan paperwork. Under TILA, if the lender does not give the customer(s) the proper number of cancellation forms or does not complete them correctly, the three-day cancellation period is extended to three years as a penalty to the lender. As a result of such violation, the customer(s) can ask for a rescission of the loan entitling them to a refund of their closing costs and any interest paid in accordance with the note.
Name (Stock Symbol)
Now defunked, at one time Ameriquest Mortgage was the largest subprime mortgage lender in the country. It is wholly owned by ACC Capital Holdings.
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