Ameriquest in Talks With 25 States

Ameriquest Mortgage, Orange, Calif., the nation's largest subprime funder, says it is negotiating with 25 states regarding concerns over some of its retail lending practices.In a mid-February bond filing, the company mentioned that the talks are between the lender and "regulatory agencies and/or attorney generals" in 25 states. The company says the states are concerned about these issues: the "appropriateness" of discount points charged prior to February 2003; the accuracy of appraisal valuations; stated-income loans; "oral" statements made to borrowers regarding loan terms; and its policies on funding Native American reservation properties. American Banker, an affiliate of National Mortgage News, published a story about the talks in its March 14 issue. A spokesman for the privately held lender said it cannot comment on specific regulatory matters but stressed that the company is "working to resolve the issues under discussion." He said Ameriquest is "committed to providing customers with the credit they deserve to achieve their financial goals." A source close to the company said Ameriquest first disclosed in January that it was having talks with various states. He added that the company continues to successfully tap the securitization market.