Ameriquest Closes, Citigroup Buys Assets

Date September 1, 2007

Ameriquest Mortgage Co, the largest U.S. subprime lender as recently as 2005, is closing. Citigroup Inc said on Friday it agreed to buy the wholesale mortgage lending and payment collection assets of Ameriquest’s parent, ACC Capital Holdings, for an undisclosed price.

Ameriquest was the first major subprime lender to downsize in the current housing cycle, deciding in May 2006 to close all 229 retail branches and cut 3,800 jobs.

U.S. President George W. Bush said on Friday the government would try to keep some borrowers from defaulting, but would not bail out lenders.

ACC “is preparing the orderly wind down of its retail mortgage business, which is no longer accepting applications,” spokesman Chris Orlando said.

Citi said in a statement it would expand its efforts to make sure distressed borrowers get to stay in their homes.

Source: Reuters

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