Letter: Firm should be further penalized

Friday, Jan. 27, 2006 | 7:09 a.m.

Regarding Ameriquest Mortgage's $325 million settlement with state regulators, who had alleged that the company engaged in deceptive lending practices: It's apparent that Ameriquest received a "slap on the hand."

In reality, someone on the inside saw a marketplace and in various inside meetings set the parameters. Those parameters took great advantage of people and in doing so piled hardship upon hardship. They knew what they were doing and their business plan forecasted what their fortunes would be.

You are only sorry ... if you get caught. Otherwise, you pay executives high salaries and the companies become kingpins in the industry, which others will emulate. The company's spokesman can always broad brush and blame the employees, regretting that some didn't meet the company's standards. But the die was cast, billions were made, invested in the marketplace and more harvested.

However, the old adage in negotiating, "admits to no wrongdoing," belies the fact that they did know there was wrongdoing because they agreed to reform several of their business practices, including providing borrowers with full disclosures.

It seems to me that a more adequate penalty would be to ban their lending within Nevada for the same period of time they reaped the benefits and add additional years for punitive damage. That would show concern for the people instead of the corporation.

R. McNeal

Henderson