Ch-ching?
This week, homeowners across the country received notice if they are eligible for a piece of a $325 million nationwide settlement with Ameriquest. In exchange for some quick cash, borrowers need to promise only that they won't sue Ameriquest for a whole bunch of predatory lending practices it committed between 1999 and 2005. Among those practices? Not adequately disclosing whether a loan carried a fixed or adjustable rate. As you may recall, this was a major cause behind the subprime mortgage meltdown. It's lucky for Ameriquest it settled before the meltdown; it may not have gotten off so easily if it didn't.
A quick Google search shows the enormous nationwide impact of the settlement and the specific numbers in a whole bunch of states, including: California, Colorado, Florida, Hawaii, Indiana, Iowa, Kentucky, Massachusetts, Missouri, Nebraska, New Jersey, Ohio, Oregon, Tennessee, Texas, and Utah.
You are joking, right? Using irony? "enormous nationwide impact"? If you divide the amount of the settlement by the number of folks that will be getting checks... um... doesn't amount to a whole lot, does it? Ameriquest is now a "kinder gentler" lender (their website says they're really good guys now). Roland Arnall, the fellow who created this monster, is now sipping fine dutch cognac in amsterdam as OUR AMBASSADOR TO THE NETHERLANDS. Point for the conmen and women - they're waaaaay ahead of us.
July 17, 2007 11:22 PM | Reply | Permalink
I'm glad some folks are getting some of their money back from a dishonest corporation. Who is going to jail for running this illegal scam?
July 18, 2007 11:07 AM | Reply | Permalink
Maybe I'm wrong, but I assume the impact is negative, in that it will undercut any efforts to litigate against the company, and reduce their potential payout for misdeeds if they lose at trial.
July 18, 2007 11:33 AM | Reply | Permalink