Attorney General's News Release

July 12, 2007

7,325 Missourians are eligible for $3.6 million in refunds from settlement with Ameriquest, Nixon says

Jefferson City, Mo. — Attorney General Jay Nixon said today that 7,325 Missouri consumers are eligible for $3,637,518 in restitution from Ameriquest Mortgage Co., the nation’s largest sub-prime lender, as part of a $325 million national settlement of a predatory lending lawsuit against the company.

Nixon and the Attorneys General of 48 other states reached the nationwide settlement with Ameriquest and its related companies in March 2006 that resolved allegations that Ameriquest and its affiliates, among other things:

• Misrepresented and did not adequately disclose the terms of home loans, such as whether a loan carried a fixed or adjustable rate;
• Charged excessive loan origination fees and prepayment penalties;
• Refinanced borrowers into improper or inappropriate loans; and
• Improperly inflated appraisals used to qualify borrowers for loans.

Some 481,000 borrowers nationwide who were customers of Ameriquest or several of its affiliates between 1999 and 2005 were eligible to receive restitution payments. The forms mailed to each consumer will indicate the minimum payment the consumer can expect to receive. The exact amount could be larger, however, depending on how many eligible Missouri consumers decide to participate in the settlement.

To participate in the settlement and receive restitution, borrowers who are receiving the latest notification have until Sept. 10, 2007 to mail their completed and signed claim forms to the third-party settlement administrator. Nixon encouraged consumers to study the claim forms and the information enclosed with the forms and reply as soon as possible.

Consumers also can obtain detailed information about the settlement and their eligibility for restitution by going to the settlement administrator’s Web site, www.ameriquestmultistatesettlement.com, or by calling 1-800-420-5875. Hearing impaired persons may call 1-866-494-8274.

Inquiries from consumers should be directed to consumer@ago.mo.gov or 1-800-392-8222 (from within Missouri) or 573-751-3321 (outside Missouri).

All media inquiries should be directed to Press Secretary John Fougere.

E-mail      Phone: 573-751-8844         Fax: 573-751-5818