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| Ameriquest has pursued a centralized business model that will help it better operate in today’s lending environment. The transition, however, has left 3,800 people unemployed.
ACC Capital Holdings announced the layoffs today, as a result of moving retail functions from the branch network to existing regional mortgage production centers in Arizona, California, Connecticut and Illinois. The employees were from 229 Ameriquest Mortgage Co. and Town and Country Credit retail branches that have been shuddered.Headquarters employees were among those let go. The Orange, Calif.-based company said the branch closures are effective immediately, and it will service all retail business from the mortgage production centers — which are staffed by existing employees. The trimmed-down operation “will improve efficiency and leverage the strengths of the company’s retail mortgage origination business,” the statement said. “Although difficult, the decisions announced today are the best strategy for improving our cost structure and increasing our ability to price loans competitively — changes that are critical to our long-term success,” Vice Chairman Adam Bass said in the announcement. “We greatly appreciate the contributions of our associates affected by today’s announcement and have taken care to assist them in their transition.” Argent Mortgage Co., the wholesale unit of ACC, cut about 16% of its 4,000-employee workforce in January. A company spokesman told MortgageDaily.com that the new strategy is not modeled after any existing mortgage banking company, but is more in line with staying ahead of the game. |
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Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com, MortgageChronicle.com, FraudBlogger.com and CloserBlog.com. e-mail:Â SamGarcia@MortgageDaily.com |
