Ameriquest Closing 229 Mortgage Lending Offices and Laying Off 1/3 of Workforce

Ameriquest, one of the largest mortgage lenders in the subprime market, is shutting down 229 branch offices and laying off 3,800 employees in  a drastic restructuring. The layoffs compose a third of the workforce and is designed to allow the company to remain competitive is a slowing mortgage environment.

Ameriquest is the nation’s largest subprime mortgage lender. It said it was centralizing its network of branches into offices in California, Arizona, Illinois and Connecticut but would continue to offer lending services nationwide.

It said the changes would not affect its ability to adhere to the terms of a $325 million multistate settlement reached this year with state attorneys general over claims of deceptive lending practices. via Chicago Tribune.