Orange-based lender Ameriquest Mortgage Co. has agreed to pay up to $50 million to settle a class-action lawsuit brought by borrowers in California and three other states, the Los Angeles Times reported Tuesday.
The lawsuit claimed Ameriquest workers levied higher fees and interest rates than borrowers had agreed to in initial loan estimates.
Under the tentative agreement, Ameriquest would pay between $15 million and $50 million in refunds to some borrowers in California, Texas, Alabama and Alaska, the Los Angeles Times reported.
Ameriquest has been under the microscope lately. It’s being questioned by attorneys general and regulators in 25 states about its lending practices, according to the report.
Subprime lenders make loans to people with spotty credit or difficulty in getting a traditional loan for other reasons.
Ameriquest has faced consumer lawsuits and complaints in some 20 states.
