Ameriquest
Encyclopedia
ACC Capital Holdings was a national mortgage lender
based in Orange, California
. The company is the largest privately held retail mortgage lender in the United States and the largest subprime lender by volume. ACCCH was founded by Roland Arnall
.
As well as Ameriquest Mortgage
, the company also owned Argent Mortgage which made wholesale loans through mortgage brokers, and AMC Mortgage Services which carried out customer services activities for all ACCCH mortgages. Ameriquest closed in 2007, and the rest of the company was acquired by Citigroup
.
On February 28, 2007 ACC Capital Holdings announced that Citi
was providing working capital
and access to credit. Citi also gained the option to purchase Argent and AMC, but this option did not extend to Ameriquest.
On September 9, 2007, Argent Mortgage was sold to Citi for an undisclosed amount. Argent was renamed Citi Residential Lending. Citi Residential Lending operated for several months before it was shut down.
On September 10, 2007, Ameriquest stopped accepting loan applications.
Former employees from Ameriquest
, which was United States's leading wholesale lender, described a system in which they were pushed to falsify documents on bad Ameriquest Mortgage
s and then sell them to Wall Street banks eager to make fast profits. There is growing evidence that such mortgage fraud may be at the heart of the Financial crisis of 2007–2010.
. Writes USA Today, "Inaugural fundraisers Dawn and Roland Arnall found a creative way to pump more than the $250,000 limit into the event. Their mortgage firm, Ameriquest Capital, contributed the maximum, as did three subsidiaries, for a total of $1 million. The company declined to comment on its political giving."
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
based in Orange, California
Orange, California
Southern California is well-known for year-round pleasant weather: - On average, the warmest month is August. - The highest recorded temperature was in 1985. - On average, the coolest month is December. - The lowest recorded temperature was in 1950...
. The company is the largest privately held retail mortgage lender in the United States and the largest subprime lender by volume. ACCCH was founded by Roland Arnall
Roland Arnall
Roland E. Arnall was a French-born American businessman and diplomat. As the owner of ACC Capital Holdings, he became a billionaire with Ameriquest Mortgage...
.
As well as Ameriquest Mortgage
Ameriquest Mortgage
Ameriquest was one of the United States' leading wholesale lenders, and the largest sub-prime lender in the nation until all but four of its top-performing retail offices were closed in September of 2007. Its loan origination practices were at the heart of the Financial crisis of 2007–2010...
, the company also owned Argent Mortgage which made wholesale loans through mortgage brokers, and AMC Mortgage Services which carried out customer services activities for all ACCCH mortgages. Ameriquest closed in 2007, and the rest of the company was acquired by Citigroup
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
.
Company reorganization
The risky nature of subprime loans, massive defaults of those loans, the softening of the real estate market, and ACC's own practices have led to a financial crisis:- In early 2006, Ameriquest MortgageAmeriquest MortgageAmeriquest was one of the United States' leading wholesale lenders, and the largest sub-prime lender in the nation until all but four of its top-performing retail offices were closed in September of 2007. Its loan origination practices were at the heart of the Financial crisis of 2007–2010...
settled a class action lawsuit for US$325 million with the attorneys general of 49 of the 50 states over allegations of predatory lendingPredatory lendingPredatory lending describes unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of inspector general of the FDIC broadly...
practices. Allegations included usuryUsuryUsury Originally, when the charging of interest was still banned by Christian churches, usury simply meant the charging of interest at any rate . In countries where the charging of interest became acceptable, the term came to be used for interest above the rate allowed by law...
and bait-and-switch tactics.
- On May 2, 2006, ACC Capital Holdings announced the closure of all of its Ameriquest Mortgage branch offices as part of a plan to consolidate its retail mortgage lending operations into four regional call centers. Thousands of employees were fired via conference call. The employees were given five minutes to get their personal belongings and leave the offic. Ameriquest would soon be joined by other American mortgage companies in announcing massive layoffs.
On February 28, 2007 ACC Capital Holdings announced that Citi
Citigroup
Citigroup Inc. or Citi is an American multinational financial services corporation headquartered in Manhattan, New York City, New York, United States. Citigroup was formed from one of the world's largest mergers in history by combining the banking giant Citicorp and financial conglomerate...
was providing working capital
Working capital
Working capital is a financial metric which represents operating liquidity available to a business, organization or other entity, including governmental entity. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is...
and access to credit. Citi also gained the option to purchase Argent and AMC, but this option did not extend to Ameriquest.
On September 9, 2007, Argent Mortgage was sold to Citi for an undisclosed amount. Argent was renamed Citi Residential Lending. Citi Residential Lending operated for several months before it was shut down.
On September 10, 2007, Ameriquest stopped accepting loan applications.
Former employees from Ameriquest
Ameriquest
ACC Capital Holdings was a national mortgage lender based in Orange, California. The company is the largest privately held retail mortgage lender in the United States and the largest subprime lender by volume...
, which was United States's leading wholesale lender, described a system in which they were pushed to falsify documents on bad Ameriquest Mortgage
Ameriquest Mortgage
Ameriquest was one of the United States' leading wholesale lenders, and the largest sub-prime lender in the nation until all but four of its top-performing retail offices were closed in September of 2007. Its loan origination practices were at the heart of the Financial crisis of 2007–2010...
s and then sell them to Wall Street banks eager to make fast profits. There is growing evidence that such mortgage fraud may be at the heart of the Financial crisis of 2007–2010.
Sponsorships
- In 2006, Ameriquest sponsored the "Ameriquest Dream Team" in the NASCARNASCARThe National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
Busch SeriesBusch SeriesThe NASCAR Nationwide Series is a stock car racing series owned and operated by the National Association of Stock Car Auto Racing. It is promoted as NASCAR's "minor league" circuit, and is a proving ground for drivers who wish to step up to the organization's "big leagues"; the Sprint Cup circuit...
. Drivers Mark MartinMark Martin (NASCAR)Mark Anthony Martin is an American stock car driver currently competing in the NASCAR Sprint Cup Series. As of 2012, Martin will drive for Michael Waltrip Racing, moving on from successful organizations such as Hendrick Motorsports and Roush Fenway Racing. He has the second most wins in the NASCAR...
(#6), Greg BiffleGreg BiffleGregory Jack "Greg" Biffle is a NASCAR driver who drives the #16 3M Ford Fusion for Roush Fenway Racing in the Sprint Cup Series. After racing in the NASCAR Winter Heat Series in the mid-90s, he was recommended to Jack Roush by former announcer Benny Parsons...
(#16), Matt KensethMatt KensethMatthew Roy "Matt" Kenseth is an American stock car driver. Kenseth currently drives the No. 17 Crown Royal Ford Fusion in the NASCAR Sprint Cup Series for Roush Fenway Racing...
(#17), and Carl EdwardsCarl EdwardsCarl Michael Edwards, II is a NASCAR driver. He currently drives the #99 Fastenal/Aflac Ford Fusion in the Sprint Cup Series and the #60 Ford in the Nationwide Series for Roush Fenway Racing...
(#60) all drove Ameriquest racecars throughout the season. In 2007, Ameriquest transferred this sponsorship to NEXTEL CupNEXTEL CupThe NASCAR Sprint Cup Series is the top racing series of the National Association for Stock Car Auto Racing . The series was originally known as the Strictly Stock Series and Grand National Series . While leasing its naming rights to R. J...
, sponsoring Biffle in the #16 car for most of the schedule. However, due to the continuing problems with the subprime loan industry, Ameriquest has announced that it will not sponsor the #16 past the 2007 season, and, judging by the end of the naming rights deal for the baseball park (see below), this deal could be terminated earlier.http://www.jayski.com/teams/16.htm - In 2004, Argent commenced a sponsorship deal with IndyCarIndyCar SeriesThe IZOD IndyCar Series is the premier level of American open wheel racing. The current championship, founded by Indianapolis Motor Speedway owner Tony George, began in 1996 as a competitor to CART known as the Indy Racing League . Citing CART's increasing reliance on expensive machinery and...
driver Danica PatrickDanica PatrickDanica Sue Patrick is an American auto racing driver, model and advertising spokeswoman. She is the most successful woman in the history of American open-wheel racing, being the only woman to win in the IndyCar Series as well as holding the highest finish by a woman at the Indianapolis 500 of 3rd...
, but it did not follow her when she switched to Andretti-Green Racing for the 2007 season. - From 20042004 in baseball-Headline events of the year:*The Boston Red Sox win their first World Series since , ending the Curse of the Bambino.*With 262 hits, Ichiro Suzuki of the Mariners breaks George Sisler's record of 257. Suzuki also sets the record for most singles in a season, with 225.*2004 also marked the final...
to 20072007 in baseball-Major League Baseball:*Regular Season Champions*World Series Champion – [Boston Red Sox]*Postseason – October 2 to October 28Click on any series score to link to that series' page....
, Ameriquest owned the naming rights to the home stadium of the Texas RangersTexas Rangers (baseball)The Texas Rangers are a professional baseball team in the Dallas-Fort Worth Metroplex, based in Arlington, Texas. The Rangers are a member of the Western Division of Major League Baseball's American League, and are the reigning A.L. Western Division and A.L. Champions. Since , the Rangers have...
baseball team. During this time the park was called Ameriquest Field. In March 2007, in an undisclosed agreement between the two entities, Ameriquest relinquished those rights, and the stadium was renamed Rangers Ballpark in Arlington, just one word off from the ballpark's original name.
Political donations
In 2005, Ameriquest Capital and three of its subsidiaries comprised four of the 53 entities that each contributed the maximum of $250,000 to the second inauguration of President George W. BushGeorge W. Bush
George Walker Bush is an American politician who served as the 43rd President of the United States, from 2001 to 2009. Before that, he was the 46th Governor of Texas, having served from 1995 to 2000....
. Writes USA Today, "Inaugural fundraisers Dawn and Roland Arnall found a creative way to pump more than the $250,000 limit into the event. Their mortgage firm, Ameriquest Capital, contributed the maximum, as did three subsidiaries, for a total of $1 million. The company declined to comment on its political giving."