American Mortgage News

Citi and ACH's Largest Investor to Provide Working Capital

ORANGE, Calif., Feb. 28 /PRNewswire/ -- ACC Capital Holdings (ACH)
announced today that it has secured additional working capital from Citi's Markets and Banking Division and ACH's majority shareholder to strengthen ACH's financial position as the company repositions to adapt to the current market environment. Citi has also agreed to become ACH's primary warehouse lender.
"ACC Capital Holdings has made great strides in addressing the challenges facing an industry undergoing fundamental changes," said Aseem Mital, chief executive officer of ACH. "This agreement provides capital and significant efficiencies to enable us to reposition our operations for long-term success."
ACH also announced that Citi has an option, in the form of a conditional purchase agreement, to acquire ACH's wholesale mortgage origination and mortgage servicing platforms, subject to certain requirements, including achieving business milestones and satisfaction of regulatory filings and approvals. Ameriquest's retail branch network and brand are not part of this transaction.
This relationship is a result of ACH's thorough review of the current market and the different strategic alternatives currently available to an
independent mortgage lender. ACH's wholesale origination business produced more than $23 billion in home loans in 2006, and ACH's mortgage servicing and special servicing platforms service a loan portfolio of more than $65 billion.
"Citi is pleased to be able to provide working capital to ACC Capital
Holdings," said Jeffrey A. Perlowitz, head of global securitization in
Citi's Fixed Income, Currencies and Commodities unit. "We have extensively reviewed ACH's progress in strengthening its operations and business practices, and are impressed with what the company has accomplished."
"Working with Citi will enhance our competitiveness," said Mital. "Our
industry leading origination and servicing platforms will benefit greatly
from Citi's financial strength and secondary market expertise."
About ACC Capital Holdings (ACH)
ACC Capital Holdings (ACH) is a national financial services company
based in Orange, CA. The ACH family of companies originate, service and
securitize a range of mortgage products. With operations nationwide, the ACH companies and their associates share a common mission of helping Americans reach their financial goals and achieve their home ownership dreams. The companies also demonstrate their commitment to communities through a wide array of partnerships, outreach programs and community investments. ACH subsidiaries include Ameriquest Mortgage Company (retail mortgage loan origination), Argent Mortgage Company (wholesale mortgage loan origination) and AMC Mortgage Services (loan servicing and capital markets).

For more information about Ameriquest Mortgage Company, Argent
Mortgage, and AMC Mortgage Services, please visit: http://www.ameriquest.com,
http://www.argentmortgage.com, or http://www.amcmortgageservices.com.