Ameriquest Mortgage Co. is closing its doors as parent company ACC Capital Holdings completes the sale of its remaining mortgage assets and servicing business to Citigroup Inc.
Citigroup is buying ACC’s wholesale mortgage origination and servicing assets, including the servicing rights for $45 billion worth of loans, the Associated Press reports. Ameriquest is not part of the deal, and stopped taking loan applications on Aug. 1, AP said, citing a statement from ACC.
According to the Los Angles Times, Ameriquest and its sister company, Argent Mortgage, were collectively the nation’s largest subprime lender in 2005.
The Times reported that Citigroup will retain most of ACC’s 2,000 employees remaining employees, down from 16,000 at the company’s peak.
ACC closed all 229 retail branch offices of Ameriquest and Town & Country Credit in May 2006 as part of a plan to consolidate its retail mortgage lending operations.
In February, ACC announced an agreement with Citigroup’s Markets and Banking Division that gave ACC working capital and made Citigroup the company’s primary warehouse lender. The deal gave Citigroup the option to acquire ACH’s wholesale mortgage origination and servicing platforms if certain business milestones were achieved.
The following month, ACC closed operations centers in five states, including retail call centers in Connecticut, Arizona, Sacramento, Calif., and Schaumberg, Ill.