Reilly Urges Consumers to Avoid Ameriquest

Boston.com ^ | 1/24/2005 | Kimberly Blanton, Globe Staff

[ex-Texan]

AG: Firm persists in unfair practices despite accords

Disclosing the details of a $325 million settlement between Ameriquest Mortgage Co. and 49 states, Massachusetts Attorney General Thomas F. Reilly advised consumers to avoid doing business with the California mortgage company.

Reilly, who is running for governor, said Ameriquest's unfair lending practices have persisted despite several regulatory actions against the company during the past decade. The current settlement, if approved by the courts, would be the fourth agreement that Ameriquest has entered into since 1996 over its lending practices.

''This is a very bad company engaged in despicable practices," by failing to disclose it was extracting high fees from customers' home equity when it refinanced their home loans, Reilly said at a press conference yesterday. * * *

''They have been doing it a long, long time," he said. ''I would personally have nothing to do with this company."

* * * One of Reilly's Democratic opponents, Deval Patrick, a former assistant US attorney for civil rights, sits on the board of Ameriquest's holding company, ACC Capital Holdings.

Patrick's spokesman, Khalil Bird, said yesterday that Patrick has no intention of resigning from the board. Ameriquest specializes in the ''subprime" market, which provides mortgages to individuals whose poor credit ratings prevent them from seeking financing from traditional mortgage lenders. * * *

Of the $325 million settlement, $295 million will go to consumers as restitution and $30 million to reimburse states for the cost of the investigation. State officials estimate some 725,000 US families were affected, for an average return of $406 per borrower.

[ex-Texan]

Big Deal. A large company settles a class action suit for pennies on the dollar. But there are other companies out there engaging in simlar practices. (Learn More?) Most consumers are ripped off by companies focusing on subprime loans. The average cost to victims oftens exceeds $ 7,500 by the time they have been targeted for foreclosure.

[LibFreeOrDie]

One of Reilly's Democratic opponents, Deval Patrick, a former assistant US attorney for civil rights, sits on the board of Ameriquest's holding company, ACC Capital Holdings.

Both Reilly and Patrick are liberals running for Gov of Massachusetts. This is free campaign advertising for Reilly...

(Instead of doing news/photo ops, Reilly ought to spend more time upholding the laws of Massachusetts.)