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Posted on November 30, 1999 by Joy Stoyle | Posted under Mortgages
AMC Mortgage Services - A Troubled Company
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Not all of these deceptive practices were aimed at borrowers. To help many borrowers get refinance loans, AMC Mortgage Services often helped them show that their houses were worth more than they actually were. Though at first this seemed to please borrowers quite a bit—they were able to get loans that they might otherwise not have qualified for—the inevitable consequences began to show. Borrowers were in over their heads, and Texas authorities started noticing that too many foreclosures were happening with AMC Mortgage and Ameriquest Mortgage Company borrowers. An investigation showed that Ameriquest Mortgage Company and its subsidiary AMC Mortgage Services were practicing deceptive and illegal loan procedures, and they filed suit against them. In what was to be a big victory for borrowers, Ameriquest Mortgage Company was ordered to pay $21 million dollars to borrowers who had been victimized by their deceptive practices and the deceptive practices of AMC Mortgage Services. This was too late for a lot of borrowers who had already lost their homes, of course, but they at least received some financial compensation. Hopefully, this compensation would help those who lost their homes to be able to get new housing. It was reported that the ruling against Ameriquest Mortgage Company affected about 21,000 Ameriquest Mortgage Company and AMC Mortgage Services customers. Consumers who were possibly eligible for compensation were contacted and asked to apply before a certain time. Checks were mailed out to all borrowers that qualified for compensation, and the funds were taken from a special trust account set aside for that purpose. Ameriquest was not the only bank that was being investigated for deceptive lending practices. Several more mortgage institutions started coming under the legal microscope when authorities started realizing just how widespread this problem could be. About The Author: |
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