Ameriquest Mortgage Co. along with AMC Mortgage Services Inc. (formerly Bedford Home Loans) and Town and County Credit Corporation agreed to pay $325 million to homeowners that were affected by home mortgage sales schemes.
The settlement is a resolution to allegations that Ameriquest and affiliates failed to properly disclose home loan terms, failure to disclose whether loans were adjustable or fixed, refinanced ineligible loans, inflated appraisals and charged increased loan origination fees.
The lawsuit spans across 49 states excluding Virginia, where Ameriquest did not conduct business.
Forms being mailed show the minimum payment that eligible consumers will receive. Average restitution payments are $812.15 but the amount can vary dependent on how many customers are involved in the settlement.
Completed forms need to signed and returned to a settlement administrator by September 10, 2007.
It is important that consumers understand if they accept the restitution payment, they relinquish their right to file a lawsuit directly against Ameriquest, unless their home is in foreclosure.
Consumers are advised to consult an attorney prior to deciding whether or not to participate in the settlement.