|The parent of Ameriquest has laid off workers and consolidated operations across all business lines in order to survive the “very challenging” nonprime market.
ACC Capital Holdings announced today “a reduction in its workforce across all lines of business” and consolidation of its operations to cut costs.
The company declined to disclose the number of workers affected by the reduction, but confirmed the layoff notices were given today as part of a Worker Adjustment and Retraining Notification filing.
The WARN act reportedly requires companies to give affected employees notice 60 days in advance of layoffs of 50 or more workers.
“This is a very challenging nonprime market,” ACC said in the announcement. “Only companies with the ability to control costs and improve loan quality are going to be successful. While extremely difficult, these changes will strengthen [ACC Capital Holdings’] financial position, increase our efficiency and improve our cost structure — enabling the company to leverage the opportunities created by consolidation in the non-prime industry.”
The Orange, Calif.-based lender said it is centralizing retail origination and portfolio retention operations to Southern California and consolidating New York wholesale loan production operations into its Illinois facilities.
“We greatly appreciate the contributions of the associates included in this reduction, and we have taken great care to provide resources to assist them,” the written statement concluded.
Last May, Ameriquest announced 3,800 layoffs would result from the closure of 229 retail branches due to its decision to move retail functions from the branch network to existing regional mortgage production centers in Arizona, California, Connecticut and Illinois.
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