Ameriquest settlement of $325 million

Here’s the latest on Ameriquest:

Ameriquest Capital Corp. has set aside $325 million for potential settlement agreements with 30 states over investigations into its lending practices, the company announced Thursday.

Ameriquest, which lends to people with poor credit and modest incomes, has been dogged by consumer complaints and lawsuits accusing the company of fraud and falsification of documents.

The Orange County-based parent of Ameriquest Home Mortgages said in a statement it has set aside the money in connection with ongoing discussions with “representatives of the financial regulatory agencies or attorneys general of 30 states.”

In March it agreed to pay $50 million to settle a class action lawsuit alleging the company cheated thousands of borrowers in four states: Alabama, Alaska, California and Texas. The settlement, finalized in June, did not include any admission of liability.

The $325 million represents the company’s best estimate of “its maximum financial liability,” Thursday’s statement said.

Ironically, “The announcement came the same day that President Bush nominated Ameriquest Chairman Roland Arnall as U.S. ambassador to the Netherlands.” Hm…