The King is Dead
From a story in today’s LA Times:
Ameriquest closes 229 offices, lays off 3,800
The parent company of Ameriquest Mortgage Co. and Town
and Country Credit retail mortgage subsidiaries said Tuesday it will launch
a new business model that will result in the closing of 229 retail branch
offices and the layoffs of about 3,800 workers, effective immediately.
This week's announcement comes on the heels of a $325 million nationwide
settlement in January, in which ACC Capital Holding Corp. and its subsidiaries
agreed to pay $295 million to consumers and make sweeping reforms of practices that states alleged amounted to predatory lending. Ameriquest also agreed to pay $30 million to 49 states and the District of Columbia for costs of the investigation or consumer education and enforcement.
Ironically enough, borrowed from the Ameriquest.com “best practices” website today:
Ameriquest was one of two lenders invited to participate in Freddie Mac's Don't Borrow Trouble consumer-awareness program. We continue to participate in events sponsored by this program across the country to help educate the public about the mortgage process and steps they can take to protect themselves from predatory lending.
We partner with various organizations to offer rescue programs to victims of predatory lending. Ameriquest is also working on programs supporting first-time home buyers in achieving the American dream.
Or should that read American Nightmare?
Thanks to the San Francisco Chronicle, we can see that Ameriquest put its money to good use:
California law prevents lobbyists from spending more than $10 per month on gifts and public officials from accepting more than $360 per year from any source. But here, too, some companies spent lavishly.
Ameriquest Capital Corp., whose lending practices are a frequent target of regulators, spent nearly $30,000 to entertain lawmakers and staffers at Rolling Stones concerts in November. Ameriquest reported hosting 38 legislative staffers, including 14 who work for Assembly Speaker Fabian Nunez of Los Angeles, at the Stones concert in San Francisco Nov. 13. With catered food and drinks and related expenses, the evening cost more than $10,000.
Two nights later, 19 members of the governor's staff had their turn at a combined cost of more than $6,000. When the band played in San Diego earlier that week, the company hosted Assemblyman George Plescia, his wife and 10 members of his staff at a reported cost of almost $4,000.
But because the law allows staffs to file separately, neither the governor nor the speaker were required to disclose the gifts made to their office.
Billionaire Roland Arnall, who built Ameriquest into the largest mortgage lender for poor credit risks, is shutting down most of his company to focus on being the new U.S. ambassador to the Netherlands.
The embattled firm yesterday said it's closing 229 branch offices, firing 3,800 mortgage staffers, and consolidating into just five call centers.
Arnall's firm was hit earlier this year with charges by 49 state attorneys general that his company used bait-and-switch schemes to cheat customers into taking out more costly loans.
Congress held up his long-sought appointment as ambassador until he cleaned up the mess. Arnall recently paid $325 million in penalties and launched sweeping reforms the branch offices - which now are being closed permanently.
And in an article from the New York Post's Online Edition:
Ameriquest's Ambassador of Doom
Arnall's firm (Ameriquest) was hit earlier this year with charges by 49 state attorneys general that his company used bait-and-switch schemes to cheat customers into taking out more costly loans.
Congress held up his long-sought appointment as ambassador (to the Netherlands) until he cleaned up the mess. Arnall recently paid $325 million in penalties and launched sweeping reforms the branch offices - which now are being closed permanently.
Sources said Arnall was preparing to sell the stripped down firm to HSBC, which has been on an acquisition spree and owns Beneficial Finance for consumers with bad credit. HSBC declined to comment.
Arnall, 67, earned his $3 billion fortune lending money at high rates to the 50 million Americans with poor credit. He was one of the top 10 donors to President Bush.
God help the Netherlands.
In case you are interested: Ameriquest Job Openings
Ameriquest closes 229 offices, lays off 3,800
The parent company of Ameriquest Mortgage Co. and Town
and Country Credit retail mortgage subsidiaries said Tuesday it will launch
a new business model that will result in the closing of 229 retail branch
offices and the layoffs of about 3,800 workers, effective immediately.
This week's announcement comes on the heels of a $325 million nationwide
settlement in January, in which ACC Capital Holding Corp. and its subsidiaries
agreed to pay $295 million to consumers and make sweeping reforms of practices that states alleged amounted to predatory lending. Ameriquest also agreed to pay $30 million to 49 states and the District of Columbia for costs of the investigation or consumer education and enforcement.
Ironically enough, borrowed from the Ameriquest.com “best practices” website today:
Ameriquest was one of two lenders invited to participate in Freddie Mac's Don't Borrow Trouble consumer-awareness program. We continue to participate in events sponsored by this program across the country to help educate the public about the mortgage process and steps they can take to protect themselves from predatory lending.
We partner with various organizations to offer rescue programs to victims of predatory lending. Ameriquest is also working on programs supporting first-time home buyers in achieving the American dream.
Or should that read American Nightmare?
Thanks to the San Francisco Chronicle, we can see that Ameriquest put its money to good use:
California law prevents lobbyists from spending more than $10 per month on gifts and public officials from accepting more than $360 per year from any source. But here, too, some companies spent lavishly.
Ameriquest Capital Corp., whose lending practices are a frequent target of regulators, spent nearly $30,000 to entertain lawmakers and staffers at Rolling Stones concerts in November. Ameriquest reported hosting 38 legislative staffers, including 14 who work for Assembly Speaker Fabian Nunez of Los Angeles, at the Stones concert in San Francisco Nov. 13. With catered food and drinks and related expenses, the evening cost more than $10,000.
Two nights later, 19 members of the governor's staff had their turn at a combined cost of more than $6,000. When the band played in San Diego earlier that week, the company hosted Assemblyman George Plescia, his wife and 10 members of his staff at a reported cost of almost $4,000.
But because the law allows staffs to file separately, neither the governor nor the speaker were required to disclose the gifts made to their office.
Billionaire Roland Arnall, who built Ameriquest into the largest mortgage lender for poor credit risks, is shutting down most of his company to focus on being the new U.S. ambassador to the Netherlands.
The embattled firm yesterday said it's closing 229 branch offices, firing 3,800 mortgage staffers, and consolidating into just five call centers.
Arnall's firm was hit earlier this year with charges by 49 state attorneys general that his company used bait-and-switch schemes to cheat customers into taking out more costly loans.
Congress held up his long-sought appointment as ambassador until he cleaned up the mess. Arnall recently paid $325 million in penalties and launched sweeping reforms the branch offices - which now are being closed permanently.
And in an article from the New York Post's Online Edition:
Ameriquest's Ambassador of Doom
Arnall's firm (Ameriquest) was hit earlier this year with charges by 49 state attorneys general that his company used bait-and-switch schemes to cheat customers into taking out more costly loans.
Congress held up his long-sought appointment as ambassador (to the Netherlands) until he cleaned up the mess. Arnall recently paid $325 million in penalties and launched sweeping reforms the branch offices - which now are being closed permanently.
Sources said Arnall was preparing to sell the stripped down firm to HSBC, which has been on an acquisition spree and owns Beneficial Finance for consumers with bad credit. HSBC declined to comment.
Arnall, 67, earned his $3 billion fortune lending money at high rates to the 50 million Americans with poor credit. He was one of the top 10 donors to President Bush.
God help the Netherlands.
In case you are interested: Ameriquest Job Openings
posted by epiclectic at 5:03 PM
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