#145 Spring 2006 — After Katrina

Settlement Not Enough?

In the second largest settlement ever involving an alleged predatory lender, Ameriquest agreed to a $325 million settlement in January after a two-year investigation led by the California attorney general. […]

In the second largest settlement ever involving an alleged predatory lender, Ameriquest agreed to a $325 million settlement in January after a two-year investigation led by the California attorney general. The company, a subsidiary of the largest sub-prime lender in the United States, regularly failed to disclose prepayment penalties, inflated appraisals and misrepresented buyers’ credit ratings. Most of the settlement money will go to customers in 49 states who bought homes using Ameriquest. Critics say the deal isn’t good enough for customers who were victimized. They point out that in New York state, the average customer will receive $1,000, which won’t make up for the damage done. The largest settlement with a predatory lender was the $484 million settlement involving Household Finance Corporation in 2002. (City Limits, 1/30)

OTHER ARTICLES IN THIS ISSUE

  • Frank Wilkinson’s Legacy

    April 23, 2006

    His was a life devoted to the preservation of our civil liberties. But it all began with a belief in decent, affordable housing.

  • Designing a Socially Just Downtown

    April 23, 2006

    Mayor Brown's plan for a new downtown in Oakland was stymied by a resurgence of grassroots housing advocacy

  • Monkey See, Monkey Do

    April 23, 2006

    The people who staff antipoverty programs hardly ever get interviewed, although they’re primary sources of non-ideological information about the grassroots problems of the poor.