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If you have additional questions not answered on
this web site, please contact the Settlement Administrator directly, rather
than the Attorney General’s Office or your state’s financial regulator.
If the Settlement Administrator is not able to answer your question, they will
contact the appropriate agency in your home state.
1. What kinds of lending practices did the
States investigate?
2. What did the Settlement require Ameriquest to do?
3. Why didn’t Virginia join the Settlement?
4. What were the eligibility requirements?
5. If I no longer had the loan, was the loan still eligible for
restitution?
6. If I no longer lived in the home my loan was for, was my loan
still eligible for restitution?
7. What if I signed my loan papers before December 31, 2005, but
there was a delay and the money for the loan wasn’t paid or funded until after
December 31, 2005? Was this loan eligible for restitution?
8. Were loans obtained before January 1, 1999 or after December
31, 2005 eligible?
9. Were loans eligible if they were transferred to Ameriquest for
servicing?
10. Were loans from Argent covered by the Settlement?
Notice of Eligibility and Restitution Payment Amount
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11. How do I know if I was eligible for a
restitution payment?
12. When were Notice letters and Release Forms sent?
13. How much were class members offered through the Settlement?
14. Why did the Notice letter state only the minimum restitution
payment?
15. When were restitution payments sent?
16. Were restitution payments taxable?
Participation in the Settlement
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17. What was required to obtain my restitution payment?
18. What was the deadline for returning Release Forms?
19. Could participation in the Settlement stop a foreclosure?
20. If I participated in the Settlement and sent in my Release
Form, do I still have to make payments on my loan?
21. What if I’ve filed or am thinking about filing for
bankruptcy?
22. What if I had more than one eligible Ameriquest loan?
Effect of Signing the Release Form
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23. Can you give me a summary of what it means if I
signed the Release Form?
24. Can I still sue Ameriquest if I signed and returned the
Release Form?
25. What lending practices did the States investigate?
26. Can you explain what it means to give up my right to file my
own lawsuit against Ameriquest?
27. Can you explain what it means to give up my right to be part
of a class action lawsuit against Ameriquest?
28. Have any class action lawsuits been filed about the lending
practices the States investigated?
29. If I decided to participate and returned the Release Form,
can I change my mind?
Completing the Release Form
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30. If I have a co-borrower on my loan, did we both
need to sign the Release Form?
31. What if I could not get my co-borrower’s signature because
of circumstances such as divorce or separation?
32. Is the information I sent kept confidential?
33. I still have some questions. Who can I contact?
34. How can I get more detailed information about the terms of
the Settlement?
BACKGROUND INFORMATION
1. What kinds of lending practices did the States
investigate? (top)
The States investigated complaints that Ameriquest used a variety of unlawful
lending practices, such as giving borrowers inaccurate information about
interest rates, Discount points and other mortgage loan terms, inflating
property appraisals, and persuading borrowers to refinance, even when
refinancing didn’t offer any real advantage to the borrowers. Some borrowers
also complained that Ameriquest pressured them to close loans on terms that
were different from those originally proposed, and failed to complete funding
of loans on time.
You can read the complete list of lending practices that the States
investigated by clicking
here to see the definition of “Lending Practices” in the
Settlement Agreement.
2. What did the Settlement require Ameriquest to do?
(top)
The Settlement required the establishment of a $295 million dollar Settlement
Fund to provide restitution payments to certain borrowers identified by the
States. The Settlement Fund was Distributed to eligible borrowers who obtained
mortgage or home equity loans directly from Ameriquest, Town and Country
Credit, or Bedford Home Loans during the period from January 1, 1999 through
December 31, 2005. Borrowers eligible for a restitution payment were notified
by mailed Notice in July 2007.
Ameriquest has also agreed to significantly change many of its lending
practices, and give borrowers complete and true information about interest
rates, Discount points, prepayment penalties, and other refinancing
terms. You can see all of the Settlement requirements by
clicking here to read Section IV of the
Settlement Agreement.
3. Why didn’t Virginia join the Settlement? (top)
Ameriquest didn’t do business in Virginia.
ELIGIBILITY
4. What were the eligibility Requirements? (top)
The $295 million Settlement Fund was divided into two separate funds of $175
million and $120 million. Borrowers could have been eligible for a restitution
payment from one or both funds.
You were eligible for a restitution payment from the $175 million fund if:
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You obtained at least one mortgage loan or home equity loan directly from
Ameriquest between January 1, 1999 and April 1, 2003, and
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The loan met criteria set by the States.
The vast majority of borrowers who obtained a mortgage loan directly from
Ameriquest, Bedford Home Loans, or Town and Country between January 1, 1999 and
April 1, 2003 were eligible to participate in the Settlement. However, a small
number of loans that closed between January 1, 1999 and April 1, 2003 did not
meet the criteria to be eligible for restitution.
You were eligible for a restitution payment from the $120 million fund if:
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You obtained at least one mortgage loan or home equity loan directly from
Ameriquest between January 1, 1999 and December 31, 2005, and
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The loan met criteria set by the States.
Each individual State determined its own criteria for Distributing its share of
the $120 million fund to its residents, based on the type of loan and other
loan characteristics. The $120 million fund was Distributed to borrowers who:
(1) obtained loans between April 2, 2003 and December 31, 2005, and (2) met the
criteria set by the State where the borrower lived at the time he or she
obtained the loan.
Important Reminder: When “Ameriquest” is referred to
in this Web site, it includes the other companies involved in the Settlement.
Therefore, if your loan meets the States’ criteria and it was obtained directly
from Ameriquest Mortgage, Town and Country Credit Corp. or Bedford Home Loans
during the applicable time period, you are eligible for a restitution payment.
5. If I no longer had the loan, was the loan still eligible
for restitution? (top)
If you had a loan eligible for restitution you could participate in the
Settlement even if you no longer had the mortgage or own the home on which you
obtained the mortgage, or if you were in default or foreclosure.
6. If I no longer lived in the home my loan was for, was my
loan still eligible for restitution? (top)
Yes. If your loan was obtained directly from Ameriquest between January 1, 1999
and December 31, 2005, and it met the requirements the States set to qualify
for a restitution payment, it did not matter whether or not you still live in
the home where you obtained the loan.
7. What if I signed my loan papers before December 31, 2005,
but there was a delay and the money for the loan wasn’t paid or funded until after
December 31, 2005? Was this loan eligible for restitution? (top)
No. To be eligible for restitution, the loan must have closed and funded during
the January 1, 1999 to December 31, 2005 time period. No other loans are
eligible.
8. Were loans obtained before January 1, 1999 or after
December 31, 2005 included? (top)
No. The Settlement only covered loans obtained directly from Ameriquest between
January 1, 1999 and December 31, 2005. For example, if you obtained one
mortgage loan from Ameriquest in August of 1997, and another in August of 2000,
only the August 2000 loan was eligible for a restitution payment, provided it
met the criteria the States set.
9. Were loans eligible if they were transferred to
Ameriquest for servicing? (top)
No. The Settlement only covered home mortgage and home equity loans obtained
directly from Ameriquest. If you obtained a mortgage loan from another lender,
but it was later sold or transferred to Ameriquest for servicing, you weren’t
eligible for a restitution payment.
10. Were loans from Argent covered by the Settlement?
(top)
No. The Settlement only covered home mortgage and home equity loans obtained
directly from Ameriquest, Bedford Home Loans, or Town and Country. A mortgage
loan obtained from Argent or another lender did not qualify under the
Settlement.
NOTICE OF ELIGIBILITY AND AMOUNT OF RESTITUTION PAYMENT
11. How do I know if I was eligible for a restitution
payment? (top)
Notice letters were mailed to eligible borrowers beginning the week of July 9,
2007. Notice Letters were mailed again in August 2007 to borrowers who had not
submitted a Release Form. The Notice letter explained that participation in the
Settlement was voluntary, and the minimum amount you would receive if you chose
to participate. It also included a Release Form and Substitute W-9 Form that
you must have signed and returned to the Settlement Administrator in order to
have participated and received a restitution payment.
12. When were Notice letters and Release Forms sent?
(top)
Notice letters were mailed the week of July 9, 2007, and again in August of 2007
to borrowers who had not responded.
13. How much were borrowers offered through the Settlement?
(top)
Your Notice letter specified the minimum payment you would receive if you
signed and returned the Release Form by September 10, 2007. Restitution payment
amounts varied from borrower to borrower, depending on the terms of each loan
and the criteria set by the borrower’s home State.
14. Why did the Notice letter only state the minimum
restitution payment? (top)
The payment amount in your Notice letter was the minimum amount you could
receive if all eligible borrowers decided to participate in the Settlement and
returned their Release Forms.
In addition, the money in the Settlement Fund was held in trust. Interest
earned on the Fund was also made available for Distribution to borrowers.
Therefore, it was possible that you could have received more than the “minimum
amount” listed on your Notice letter.
15. When were restitution payments sent? (top)
Checks were mailed to eligible borrowers who participated on December 14, 2007.
If you were expecting to receive a check from the Settlement, please allow 7 to
10 days for the checks to be delivered.
16. Were restitution payments taxable? (top)
A Substitute W-9 Form was included with your Notice and Release packet. The
Settlement Administrator is required by law to report this information to the
Internal Revenue Service (IRS). You may have also received an IRS form with
your check, if your restitution amount was high enough to be reportable.
However, this doesn’t necessarily mean you will have to pay taxes. Whether any
restitution payment you received is taxable will depend on several factors.
Neither the Settlement Administrator nor any of the States or Ameriquest can
give you tax or other legal advice on this matter. If you have tax questions,
you should contact a local tax preparer or advisor.
PARTICIPATION IN THE SETTLEMENT
17. What was required to obtain my restitution payment?
(top)
You must have signed and returned the Release and W-9 Forms, postmarked by
September 10, 2007, to the following address:
Ameriquest Settlement Administrator
P.O. Box 1855
Faribault, MN 55021-7110
18. What was the deadline for returning Release Forms?
(top)
You must have signed and returned your Release Form and Substitute W-9 Form
postmarked by September 10, 2007.
19. Could participation in the Settlement stop a
foreclosure? (top)
Participation in the Settlement by signing and returning the Release Form will NOT
stop or undo a foreclosure. But remember, by signing and returning the Release
Form you did not give up your right to fight any foreclosure proceedings, or to
make any claims or defenses related to the Settlement in those proceedings.
20. If I participated in the Settlement and sent in my
Release Form, do I still have to make payments on my loan? (top)
Yes. While the Settlement gave you the opportunity to obtain a restitution
payment, it doesn’t affect the status of your loan. You must continue to make
your mortgage payments under the terms of your loan agreement.
21. What if I’ve filed or am thinking about filing for
bankruptcy? (top)
We’re not able to give you legal or other advice on this matter. If you have
filed or are thinking about filing for bankruptcy, you should ask your
bankruptcy attorney or the bankruptcy trustee whether your restitution payment
or any claims you may have against Ameriquest need to be included in the
bankruptcy filing.
22. What if I had more than one eligible Ameriquest loan?
(top)
If you had more than one eligible loan, you would have received separate Notice
letters and Release Forms for each loan, each with its own minimum restitution
payment amount.
EFFECT OF SIGNING THE RELEASE FORM
23. Can you give me a summary of what it means if I signed
the Release Form? (top)
When you signed the Release Form, you agreed to participate in the Settlement
and receive a restitution payment. In return for your payment, you gave up some
legal rights and choices you might otherwise have had. These rights are
summarized below. Click on the underlined Question link for more detailed
information about each right.
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You gave up all claims you have against Ameriquest about certain lending
practices with respect to the mortgage loan that is listed on your Release
Form, except for any claims you might have in a foreclosure proceeding
(Question 24). Please read Question
25 for a list of the lending practices that are included.
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You gave up the right to file your own lawsuit against Ameriquest about the
listed lending practices. Remember, to bring your own individual lawsuit, you
would have to hire your own lawyer (Question 26).
-
You gave up the right to be part of a class action lawsuit against Ameriquest
about the listed lending practices (Question 27). Several
lawsuits have already been filed against Ameriquest, but the courts in those
cases, except for a state court in Minnesota, haven’t decided yet whether to
allow them to go forward as class actions (Question 28).
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When you signed and returned the Release Form, your decision was Final. You
can’t change your mind, even if you later decide you could get more money from
your own lawsuit or by participating in a class action (Question 29).
Reminder: When “Ameriquest” is referred to in
this Web site, it also includes the other companies involved in the Settlement
-- ACC Capital Holdings Corp., Town and Country Credit Corp., and AMC Mortgage
Services, Inc. (formerly doing business under the name Bedford Home Loans).
24. Can I still sue Ameriquest if I signed and returned the
Release Form? (top)
No. When you signed the Release Form, you forever “released” or gave up any
claims you might otherwise have had against Ameriquest about any of the alleged
unlawful lending practices investigated by the states with respect to the
mortgage loan account that is listed on your Release Form -- with one
exception. That exception is you did not give up any
claim or defense you might have in response to a foreclosure regarding your
loan. You can sue Ameriquest in order to raise any claims you might have
regarding a loan in foreclosure.
In other words, if you have a loan that is eligible for restitution and you
signed and returned the Release Form, you are not be able to file your own
lawsuit or join another lawsuit (including a class action lawsuit) against
Ameriquest about the lending practices the States investigated. This is true
whether the lawsuit asks for money, or asks for other benefits, such as
cancellation of your loan. If you signed the
Release Form, your restitution payment is the only thing you are entitled to
from Ameriquest with respect to the loan, except for any claims you might have
in a foreclosure. Please remember that you are not releasing any claims you
might have with respect to any other loan with Ameriquest you may have
obtained, if that loan is one that is not eligible for a restitution payment.
You can read the entire release in section VII of the
Settlement Agreement by
clicking here.
25. What lending practices were investigated by the States?
(top)
The lending practices that the States investigated are representations or
misrepresentations, omissions, acts, or transactions relating to:
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Loan types and terms, including Discount points, interest rates, origination
fees, monthly payment amounts, terms of adjustable rate and fixed-rate
mortgages and prepayment penalties.
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Written Disclosures, including the good faith estimate, and other documents
provided by Ameriquest to borrowers.
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The benefits of obtaining a loan or a repeat refinancing with Ameriquest.
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Coordination with debt collectors.
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The completion of underwriting and funding the loan on time.
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Loan closing.
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Appraisals.
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Stated income loans.
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Disclosures to non-English speaking borrowers and potential borrowers.
26. Can you explain what it means to give up my right to
file my own lawsuit against Ameriquest? (top)
If you signed and returned the Release Form, you cannot sue Ameriquest yourself
about the lending practices investigated by the States with respect to any
eligible loan. That means you gave up the potential to receive more
money than your offered restitution payment. However, if you would have sued,
there’s no guarantee you would win the lawsuit, or that you would receive more
money.
27. Can you explain what it means to give up my right to be
part of a class action lawsuit against Ameriquest? (top)
If you signed the Release Form, you also gave up the right to be part of a class
action lawsuit against Ameriquest about the lending practices investigated by
the States with respect to any eligible loan.
In a class action lawsuit, one or more people sue on behalf of other people who
have similar claims. The people together are a “class” or “class members.” The
Court must first rule if it will allow the lawsuit to proceed as a class
action. If it does, the class is “certified”, and the court then decides the
lawsuit for everyone in the class. When a class is certified, whatever is
decided applies to everyone in the class. The lawsuit is sometimes called a
“purported” or “potential” class action until the Court decides that the
lawsuit can go forward as a class action. In a class action, class members
generally don’t have to pay the lawyers.
If the class action is successful, the lawyers’ fees and costs are usually
either paid by the defendants or taken out of the money that is recovered. If
the class action is not successful, the lawyers don’t get paid.
Giving up the right to be part of a class action lawsuit against Ameriquest
means you are giving up the potential to receive more money than your
offered restitution payment. However, there’s no guarantee that any class
action lawsuit would be successful and that you would receive money. That
depends on many factors, including whether the class action is certified by the
court, whether you’re in fact a member of the class certified, and whether (and
in what amount) any money is awarded to class members.
28. Have any class action lawsuits been filed against
Ameriquest about the lending practices the States investigated? (top)
Yes, several purported class actions have been filed about some of the same
lending practices investigated by the States. Some of the people who filed
these lawsuits are asking the courts to certify or allow the suits to go
forward on behalf of a class of borrowers that might include you. However, only
one of these courts so far has decided to allow the case to go forward as a
class action. That case is in Minnesota and is called Ricci & Baumgartner v.
Ameriquest Mortgage Company. There, the court certified a class of
Minnesota homeowners who obtained mortgages from Ameriquest from February 17,
1999 to the present.
None of the courts in any of the other lawsuits have decided yet whether to
allow them to go forward as class actions. There is no way to know for now
whether any of the lawsuits will be certified as class actions, or whether you
would be a member of any class certified. There is also no way to know, if a
class is allowed and you are a class member, whether any money will be obtained
for class members, or, if money is awarded, how much it will be. It could be
more than your minimum restitution payment, less than your payment, or nothing
at all.
29. If I decided to participate and returned the Release
Form, can I change my mind? (top)
No. When you signed and returned the Release Form, your decision to participate
was final. That’s true even if you later decide -- or someone tells you -- that
that you could get more money than your restitution payment.
The same result is true if you chose not to sign the Release Form (or didn’t
send the Release Form in on time). That decision is also final.
COMPLETING THE RELEASE FORM
30. If I have a co-borrower on my loan, did we both need to
sign the Release Form? (top)
Yes. Each person who signed the original loan documents needed to sign the
Release Form, except in circumstances where a borrower’s signature could not be
obtained (such as divorce or separation, death, or where a co-borrower has a
guardian). Where they were all available to sign, the restitution payment
checks were made payable to all co-borrowers.
31. What if I could not get my co-borrower’s signature
because of circumstances such as divorce or separation? (top)
In situations where one or more borrowers were unable or unavailable to sign the
Release Form, attempts were made to contact the missing borrowers. If the
missing borrowers were not able to be contacted or declined to participate in
the Settlement, the signing borrowers were issued their portion of the
restitution amount.
32. Is the information I sent kept confidential? (top)
Yes. The Settlement Administrator has a responsibility to protect the privacy of
all information you provided. The Administrator has the same responsibility to
maintain confidentiality of loan information provided to it by Ameriquest. All
of this information was used only to process Release Forms and make restitution
payments.
GETTING MORE INFORMATION
33. I still have some questions. Who can I contact?
(top)
If you have additional questions about the Settlement, you can contact the
Settlement Administrator by:
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Calling toll-free 1-800-420-5875 (hearing impaired call 1-866-494-8274) between
the hours of 8:00 a.m. and 7:00 p.m., Central Time, Monday through Friday;
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Sending an e-mail to info@ameriquestmultistatesettlement.com;
or
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Writing to: Ameriquest Settlement Administrator, P.O. Box 1855, Faribault, MN
55021-7110
If you write, call or send an e-mail to the Settlement Administrator, be sure
to include your full name, phone number, street address, city, state and zip
code.
Please contact the Settlement Administrator directly, rather than the
Attorney General’s Office or your state’s financial regulator.
If the Settlement Administrator is not able to answer your
question, they will contact the appropriate agency in your home state.
34. How can I get more detailed information about the terms
of the Settlement? (top)
You can read the entire Settlement Agreement on this Web site by clicking
here.
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