Ameriquest to Close - execs wonder “why’d we spend all that money on Super Bowl ads?”
- 1.09.2007
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Ameriquest, long the poster-child of successful (and suspect) subprime lending announced that the unit will close upon the finalization of their sale to parent company Citi. Citi will pick up their servicing portfolio, along with their wholesale arm Argent Mortgage in the deal. Thanks to commenter BB for pointing out the news story to us.
From the release:
Along with shuttering Ameriquest, Orange-based ACC Capital Holdings also said it was selling its wholesale mortgage origination operation and a mortgage servicing business to Citigroup for an undisclosed sum.
Under the agreement with ACC, Citigroup acquires servicing rights for $45 billion worth of loans. Terms of the deal, expected to close Sept. 1, were not disclosed.
Citigroup is the nation’s largest financial institution.
The sale includes operational centers in Orange and Rancho Cucamonga, along with Rolling Meadows and Schaumburg, Ill., as well as a broker network extending across 48 states.
More from the OC Register on Citi’s plans for employees here in town:
Danielle Romero-Apsilos, a spokeswoman for Citigroup, said Argent is still making a small amount of loans.
“We will restart the origination business slowly and it will be under new management and we will have a new brand,” she said.
Citigroup plans to keep the Orange office as well as three other operation centers that will report to New York, she said.
The company is picking up about 2,000 employees nationwide from ACC and plans to keep most of them, she said.
More blog reaction from Housing Wire.
Hey, at least we’ll always have their commercials:
