Ameriquest Employees Confess: Lying To Customers, Forging Papers

Yesterday’s Morning Edition featured confessions from former Ameriquest mortgage employees. The confessions included startling revelations, such as:

• Amerquest showed the film Boiler Room as a training film to new hires. The film is about crooked stock brokers who sell bogus stocks to unsuspecting investors.

•Customers were told that their mortgages were fixed for “as long as they wanted” when in reality, they were only fixed for 2 years.

• Fixed rate mortgage papers were stacked on top of variable rate ones. After tricking the customer into signing all of them, the fixed rate papers were discarded.

•”Sending papers to the Art Department” was slang for covering the income numbers on w2s and writing in bigger ones, so as to qualify customers for mortgages they could not afford.

It’s a great piece, everyone should head over to NPR and have a listen. —MEGHANN MARCO

Former Ameriquest Workers Tell of Deception [NPR]

Comments

Edit Your Comment

  1. tvh2k says:

    Ha — I love Boiler Room!

  2. TJK Superstar says:

    @tvh2k:
    Boiler Room is awesome.

    “I had a very strong work ethic. The problem was my ethics in work.”

  3. mac-phisto says:

    caveat emptor. all those homeowners that were scammed should have known better. let them live in a box since they bought a house for more than they could afford.

    isn’t that the popular sentiment around here?

  4. SadSam says:

    Conflicted on this one. I listened to this NPR story the other day and if some of these allegations are true then there are people facing financial ruin and loss of their home due to fraud. On the other hand, this story also made me mad at the folks who bought these homes without reading the closing documents they were signing, without understanding what they were getting into, thinking they can afford a $400,000 house on $30,000. I thought what the heck is wrong with these people, are they stupid?! And then I thought, yes they probably are stupid and don’t know better and don’t know smarter people to help them. I also got mad at the gov., all these fly-by-night mortgage companies are basically unregulated with little to no gov. oversight. Getting a mortgage from one of these mortg. companies is completely different from a bank mortgage.

  5. It all falls back on illiteracy and a person’s inability to think critically and logically. Thats what causes all these scams to be successful.

  6. nuton2wheels says:

    @SadSam:

    Very true. If I had to give my John Hancock on a myriad of papers that totaled up to a $400,000 loan, I had better know what I’m getting into. If the broker is getting pissy and impatient about me reading of every page in the closing documents from the note to the HUD-1 statement, that’s their problem. A lot of people let themselves get rushed through this process and get some rude awakenings in the following months.

    @Holden Caulfield:

    I have dealt with customers who were suckered into refinancing from 5% fixed interest rate (remember those?) mortgages to the awful Payment Option ARM loans (accrue negative amortization) under the promise that their first month’s introductory, 4% term was indeed permanent. I still don’t know how the broker managed to lie about it so convincingly, but some people will believe anything.