Ameriquest Settles With Borrowers, Has Little to Give

Orange County-based Ameriquest Mortgage has settled 29 class action lawsuits over its alleged predatory lending tactics. The company will pay approximately 712,000 class members and their lawyers $22 million.

The proposed settlement (which includes stipulations that both parties can't discuss it) was filed in District Court in Chicago last month, and excludes class members who have previously received settlements, like those involved in the $325 million payment in 2006. In that settlement, each individual payout was around $900.

Not on the hook in this settlement? The Wall Street firms that funded lenders like Ameriquest during the subprime boom. Instead, Ameriquest will fund the total settlement with its few assets and minimal capital, resulting in a small dollar amount per class member.

— Cynthia Foster

Comments

[Tom Worden]

Maybe my arithmetic skills are rusty, but a $22,000,000 payout divided among 712,000 class members equals $30.98 each, before paying the lawyers. In order to pay each of the 712,000 class members $900 if they all opt in Ameriquest would need $640,800,000. Presumably attorneys fees would add nearly as much again. Maybe the story should focus on how much the attorneys will get paid regardless of the award to the injured parties whose primary role, at $30.98 each, seems to be the fodder for the fees mill.

[Cynthia]

Thanks, Tom. You're right that the math doesn't quite add up. It was my error - the $900 average payout was from the 2006 settlement. I'll update the item to reflect this.

[Marie]

How would I go about finding the loan number of the loan we had with Ameriquest Mortgage. I can't find the paperwork on that loan. Can you give me any aadvice on finding that number?

[gwen malone]

I would like to know why I was not included in the 2007 settlement and now I can only receive 31.00 dollars as a settlement payment. How unfair is that!!!

[vimax]

$22 million..How are there many zero?

[AMERIQUEST SUCKS!]

if you settled in Floida during 2006, you got 266.00, I didn't take the settlement. I told them to kiss off.

[AMERIQUEST SUCKS!]

There was a fairness hearing during April. No new since?

[That Sucks]

Is there actually 712,000 people who were a part of this or was there a much smaller number who took advantage of this suit.

[DEBORAH STOLZKE]

I LOST MY HOUSE BECAUSE OF AMERIQUEST

[jan Davenpoet]

I also lost my house thanks to Ameriquest they just kept adding charges I couldn't pay. The harder I tried the higher the payment

[Janet]

Is Ameriquest able to keep the home loans they had, I know they can't do new loans but what about all the other home loans they had.