Released on = January 28, 2006, 7:41 pm

Press Release Author = www.perfecthomeliving.com

Industry = Real Estate

Press Release Summary = In the housing market a trend of great concern is mortgage
fraud.

Press Release Body = West Valley City, UT / January 29, 2006 / Press Release / --
New home sales catapulted to an all time high in 2005 for a fifth year in a row
according to the Commerce Department. Sales of new single-family homes amounted to
1.28 million units last year, a 6.6 percent increase over last year's 1.20 million
units, the previous all-time high.
Even with such record settings, the economic growth in the US weakened unexpectedly
in the fourth quarter of 2005, rising by 1.1 percent, the slowest pace in three
years according to government reports.
This intensity of economic slowdown has many analyst concerned about other trends
emerging. In the housing market a trend of great concern is mortgage fraud.
As the U.S. housing market enters into 2006, Ameriquest Mortgage Company, the
nation\'s largest sub-prime lender and its parent company ACC Capital Holding Corp
have agreed to pay $325 million to settle allegations of unlawful lending practices
and mortgage fraud.
According to statements from former and current employees top-down pressure was
mandated to boost loan sales that ultimately created \"boiler room\" atmosphere where
workers forged documents and inflated borrower\'s incomes and home values to qualify
them for loans they couldn\'t afford.
The California-based company has agreed to refund $295 million to consumers and make
sweeping reforms of practices that states alleged amounted to predatory lending.
Ameriquest according to Jacksonville Business Journal will also pay a total of $30
million to the states (approximately $600,000 per state) for costs associated with
the investigation and consumer education and enforcement. Utah families can expect
to receive approximately $1,875,000.
Under the agreement, Ameriquest is required current requirements in place that
protect borrowers. New requirements must include:
§ Full disclosure of terms - including specific language to be included in
loan documents that explains in simple language the terms of their loan, including
rates, points and penalties, if any.
§ Giving borrowers notice before closing on their loan if any changes are
made to the loan terms.
§ Restrictions on refinancing offers and prepayment penalties.
§ The company will also take steps to make sure borrowers applying for
stated income loans, or loans in which borrowers don't offer proof of income, sign
statements certifying they're telling the truth.
§ Independent third parties will now handle closings, at which borrowers
are asked to review and sign final loan documents.
§ Courts must approve any settlement before it becomes final.
In Utah families can find out if they are eligible for receiving restitution by
contacting the Utah Attorney General's Office at 801.366.0260.


Web Site = http://www.perfecthomeliving.com

Contact Details = Perfect Home Living
West Valley, UT
Tel: 801.668.3952
Fax: 801.528.3321
Email: businessdevelopment@perfecthomeliving.com