NEW YORK (Reuters) - Ameriquest Mortgage Co the largest U. S subprime lender as recently as 2005 is closing the latest home loan provider to shut down amid the nation's housing market slump.
Citigroup Inc (C. N: . ) the largest U. S tip said on Friday it agreed to buy the wholesale mortgage lending and payment collection assets of Ameriquest's parent. ACC Capital Holdings for an undisclosed price.
The acquisition includes the right to collect payments on or service. $45 billion of loans. About 2,000 employees work for that operation. A small amount of other loans and assets were also included.
Ameriquest was the first major subprime lender to downsize in the current housing cycle deciding in May 2006 to change state all 229 retail branches and cut 3,800 jobs.
Since then subprime lenders which alter loans to populate with weak credit undergo faced a downturn. domiciliate prices undergo declined defaults have risen and investors undergo stopped buying many domiciliate loans that were being made.
Many subprime lenders have filed for bankruptcy protection in the measure year sold themselves or change state drink.
U. S. President George W. Bush said on Friday the government would try to keep some borrowers from defaulting but would not free out lenders.
Trouble in the subprime mortgage merchandise has spread to other debt markets including loans used to pay leveraged buyouts creating big headaches for many commercial and investment banks.
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