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WASHINGTON-The Association of Community Organizations for Reform Now, a housing activist group here, is accusing subprime lender Ameriquest Mortgage Co. of preying on vulnerable borrowers.
According to ACORN, Ameriquest is targeting low- and moderate-income minority neighborhoods to sell expensive loans.
ACORN said Ameriquest, Orange, Calif., is guilty of unfair practices, such as providing misleading information, and promising one interest rate and then writ Ing a higher one on the loan documents.
Ameriquest is a corporate descendent of Long Beach Mortgage, which was forced into a $4 million settlement with the Justice Department after a review of its loan files found that the company...