TALLAHASSEE – Attorney General Charlie Crist and Office of Fin…

TALLAHASSEE - Attorney General Charlie Crist and Office of Financial Regulation Commissioner Don Saxon today announced that Florida and 48 states plus the District of Columbia have signed the second largest consumer protection settlement ever with Ameriquest Mortgage Company and its parent company, ACC Capital Holding Corporation. Among the states that signed the $325-million agreement, Florida has the second largest pool of Ameriquest consumers eligible for compensation. The California-based company has agreed to refund $295 million to consumers and make sweeping reforms of practices that the states alleged amounted to predatory lending. Ameriquest also will pay a total of $30 million to the states for costs of the investigation and consumer education and enforcement. Ameriquest is the nation?s largest lender specializing in sub-prime loans, which are loans to individuals with marginal credit histories. The settlement resolves allegations of predatory practices by the company, including claims of inflated appraisals, unjustified fees and penalties, and high-pressure and deceptive tactics against prospective borrowers. Today?s agreement culminates two years of investigation by the Attorneys General, state banking regulators and local prosecutors, followed by a year of settlement negotiations. "This landmark agreement sets high standards that we expect other mortgage lenders to follow," Crist said. ?Floridians and other consumers should be protected from predatory business practices. This is a good result for everyone seeking to pay off their home loan or get out of debt.? Floridians are expected to receive approximately $19 million of the $295-million settlement fund. Florida?s share of the settlement was negotiated by the Office of Financial Regulation and the Attorney General?s Office. Ameriquest has approximately 62,000 borrowers in Florida. Consumers do not need to take any action at this point to pursue recoveries ? they will be contacted later by the states in the months ahead as specific recovery terms and plans are determined. ?Our goal is to protect the financial interests of Florida consumers,? said Saxon. ?We will continue to aggressively investigate and demand compensation from companies that prey on unknowing consumers.? Under the agreement, Ameriquest must exceed current requirements in the law to protect prospective borrowers. The new requirements include provisions for full disclosure of loan terms, including specific language be included in loan documents. Potential borrowers must be told what kind of loan they will be getting and whether the loan includes a prepayment penalty. Appraisals cannot be inflated, and there will be restrictions on refinancing offers and prepayment penalties. No refinancings may be made that do not benefit the borrower. Independent third parties will now handle closings, at which borrowers are asked to review and sign final loan documents. The courts must approve the settlement before it becomes final. The settlement is between the states and ACC Capital Holding Corporation, along with its subsidiaries Ameriquest Mortgage Company, Town & Country Credit Corporation and AMC Mortgage Services, Inc., formerly known as Bedford Home Loans.

TALLAHASSEE – Attorney General Charlie Crist and Office of Fin…

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