Department of Financial Institutions
Greg Gonzales, Commissioner

Provide full disclosure regarding interest rates, discount points, prepayment penalties, and other loan or refinancing terms. The agreement provides for both written and oral disclosures.

Ensure that employees do not defeat the purpose of these disclosures by criticizing or playing down the accuracy or importance of the disclosures.

Provide the same interest rates and discount points for similarly-situated consumers.

Ensure that every loan benefits not only Ameriquest and its commissioned employees but the borrower as well.

Substantially revise their employee compensation system to eliminatecertain incentives. This new system may not provide incentives to include prepayment penalties or any other fees or charges in the mortgages.

Retrain their employees to comply with the terms of the settlement agreement.

Monitor their employees more closely to ensure they comply with the settlement agreement.

Overhaul the company’s appraisal practices by removing branch offices and sales personnel from the appraiser selection process, prohibiting them from pressuring appraisers for higher values and instituting a system of periodic review to ensure the independence of appraisers and the accuracy and integrity of the appraisals.

Limit prepayment penalty periods on certain variable rate mortgages.

Not solicit their borrowers to refinance during the first 24 months of their loan, unless the borrower initiates it.

Use independent loan closers.

Adopt policies to protect whistle-blowers and facilitate reporting of improper conduct.