Definition:
Ameriquest Mortgage was a mortgage lending company in the United States that specialized in home loans, particularly subprime and non-conforming mortgages.
Overview:
Founded in 1979 and headquartered in Orange, California, Ameriquest Mortgage became one of the largest subprime mortgage lenders in the U.S. during the 1990s and early 2000s. The company operated as a subsidiary of ACC Capital Holdings and offered mortgage products to borrowers who did not meet conventional lending criteria, often charging higher interest rates due to increased credit risk. Ameriquest expanded rapidly during the housing boom, utilizing a large network of retail branches and independent brokers.
The company faced significant regulatory scrutiny and legal action due to allegations of predatory lending practices, including loan flipping, misrepresentation, and excessive fees. In 2006, Ameriquest and four other major subprime lenders reached a $325 million settlement with state regulators over deceptive lending practices. Despite attempts to reform operations, the company ceased originating new loans in 2007 amid the broader subprime mortgage crisis. Most of its assets and operations were later liquidated.
Etymology/Origin:
The name "Ameriquest" is a portmanteau of "America" and "quest," suggesting a mission or pursuit related to American homeownership. The term reflects branding aimed at national reach and aspiration.
Characteristics:
- Specialized in subprime and alternative documentation ("low-doc" or "no-doc") mortgages.
- Operated through a decentralized model with numerous retail branches.
- Heavily involved in securitization, selling loans to investors via mortgage-backed securities.
- Known for aggressive sales practices and commission-based compensation for loan officers.
- Subject to multiple investigations and legal actions related to lending practices.
Related Topics:
Subprime mortgage crisis, predatory lending, mortgage-backed securities, ACC Capital Holdings, housing bubble (United States), financial regulation, Countrywide Financial, New Century Financial.