Lender Ameriquest Mortgage Co. has paid out $18 million in restitution to New York borrowers in an effort to settle with the New York Attorney General’s Office over allegations that the lender engaged borrowers using unethical lending practices.

In a press statement, The New York Attorney General’s office said checks would be mailed to 13,686 New Yorkers—all of whom are eligible based on information included in their loan profiles.
The New York Attorney General’s office reached an agreement with the lender in 2006 after the lending platform was accused of encouraging borrowers to refinance into loans that were either misrepresented or lacking the proper disclosures.
“As homeowners throughout the state and the country grapple with the fallout from the subprime mortgages we must do all we can to soften the blow,” said New York Governor Eliot Spitzer. “The Ameriquest settlement demonstrates why strong state enforcement to combat predatory lending practices is crucial to protecting consumers. The financial relief provided through this settlement will help borrowers defray the price of these costly loans.”
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