home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.


Ameriquest Sale Imminent

Financial firm executive sees yearend deal

December 6, 2006

By JERRY DeMUTH


A sale of the mortgage subsidiaries of ACC Capital Holdings, for which bids reportedly are now being sought, could happen "shortly," according to one industry insider.

"It's imminent," Matthew Howlett told MortgageDaily.com. "I would expect it to happen maybe before the year is out -- that early. I think we're getting close. They have received initial bids."

Such an intended sale fits in with current consolidation trends in the mortgage industry, the Fox-Pitt Kelton vice president explained.

"We're going to see continued consolidation, even with some of the top five players, with Option One already being sold," he noted. "We would expect the other remaining independent players to be sold at some point over the next year."

A spokesperson for the Orange, Calif.-based national financial services company declined to comment on the reports.

ACC mortgage subsidiaries include Ameriquest Mortgage Co., AMC Mortgage Services Inc., Argent Mortgage and Town & Country Credit Corp., all of which focus on nonprime lending. As of July 31, 2005, according to a report by Fitch Ratings, AMC serviced more than 515,000 loans totaling $78.6 billion.

Argent, said Howlett, has been "shopped around probably since the middle of last year. Now we think the entire servicing and retail properties are going to go as well."

Any sale still could involve only Argent, he admitted, but added, "In our view, it's going to be the entire [mortgage] organization. But that's just pure speculation on our part."

ACC Capital's reported plans are, said Peter DiMartino, an analyst at RBS Greenwich Capital, "symptomatic of the bigger picture, which is an industry that's evolving." A sale that would include Ameriquest, he pointed out, is "important because they have a significant presence in this [ABS] market. They are important issuers in the home equity market and probably one of the longest standing and largest issuers in this market. So it's certainly newsworthy."

Investors want to know about any sale activity, he added, but a sale would not change the value of the securities backed by Ameriquest loans because "the structure of ABS isolates them from many events." Thus any sale would "not cause a big ripple in the ABS market."

But how the company and its assets, excluding the securities it has issued, will look post any acquisition, DiMartino said, as well as how the industry will look post any acquisition, will depend on who acquires Ameriquest and any of the other ACC Capital mortgage subsidiaries.

Any sale of Ameriquest and the other ACC Capital mortgage companies, Howlett explained, would occur in a cycle of the mortgage industry that is very competitive, with margins that are very thin and smaller companies too thinly capitalized.

"A lot of these smaller guys are looking for partners right now with the investment bankers who have the bigger balance sheets and can get them through this part of the cycle," he said. "We think the days of the independent specialty finance company in mortgage lending is probably gone."

Ameriquest and the other companies are now in a better position for a sale than they were a year ago, said Howlett, pointing to the agreement parent ACC Capital reached last January with a committee of state attorneys general and financial regulators resolving questions about its lending practices and to the launching, in May, by Ameriquest and Town and Country Credit of a new business model that included a workforce reduction of approximately 3,800 associates and the immediate closing of 229 retail branch offices. Those offices, said the company, were closed in favor of a cost-cutting strategy utilizing four regional mortgage production centers and the Internet.


Jerry DeMuth is an award winning journalist who has been reporting for four decades.

e-mail Jerry at [email protected]
Nonprime and Subprime News | Subprime Statistics
Stories about non-QM products. Coverage of subprime, Alt-A and
hard money lending. Home-equity loans and home-equity lines of credit.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders