Over $14 million dollars in checks are being mailed to 18, 481 Michigan loan borrowers as part of a settlement with Ameriquest Mortgage, once the nation’s largest sub-prime lender.
The payments are part of a $295 million national settlement stemming from a predatory lending lawsuit against them.
More than 300,000 nationwide borrowers are expected to receive a share of the settlement. Total restitution to Michigan borrowers is estimated at $14,575,554.
Consumers who accepted restitution payments relinquished their rights to file a lawsuit against Ameriquest Mortgage, in relation to any loans covered by the settlement. However, those borrowers that agreed to a settlement, did not give up any claims they may otherwise have should their home go into foreclosure.
The settlement was between Ameriquest Mortgage Co. and the attorneys general and banking regulators of 49 states and the District of Columbia. It resolved allegations that Ameriquest and its affiliates, among other things, misrepresented and did not adequately disclose the terms of home loans, such as whether a loan carried a fixed or an adjustable rate; charged excessive loan origination fees and prepayment penalties; refinanced borrowers into improper or inappropriate loans; and improperly inflated appraisals used to qualify borrowers for loans.