Ameriquest Mortgage Co.’s pending settlement with 33 states could have the Orange-based subprime mortgage lender pay $325 million and overhaul its business practices, the Los Angeles Times reported Wednesday.
The lender would pay $295 million to borrowers and $30 million to states to cover their investigations of Ameriquest’s practices, according to a draft settlement written by state officials. A deal could be finalized by January.
The settlement has been a key hurdle for the nomination of Ameriquest founder and owner Roland Arnall as ambassador to the Netherlands.
Ameriquest’s settlement bid coincides with the end of the subprime industry’s boom of the past few years. The company is the largest lender to borrowers with imperfect credit.
Rising interest rates have slowed business and crimped profits for subprime lenders, which are heavily concentrated in Orange County.
Ameriquest recently said it plans to lay off 1,500 of its 15,000 workers, including about 325 locally.
