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