Rising interest rates took their toll on Orange-based ACC Capital Holdings on Thursday, with the parent of the the nation’s largest subprime lender saying it plans to cut 10% of its staff, or roughly 1,500 employees.
ACC unit Ameriquest Mortgage Corp. employed about 7,000 workers in Orange County before the layoffs, the company said for a previous story. The company has about 15,000 workers in the U.S.
“The mortgage industry is entering a more challenging phase of rising interest rates,” the company said in a statement. “In response to these changing market conditions, the ACC Capital Holdings family of companies is reducing its current workforce by approximately 10%. In cyclical industries such as mortgage lending, periodic workforce reductions are not uncommon.”
The layoffs were effective immediately, the company said. Job losses were concentrated in the company’s Ameriquest, AMC Mortgage Services and Town & Country Credit subsidiaries, the company said.
Jobs were spared at its loan servicing division, wholesaler Argent Mortgage and auto loan lender Long Beach Acceptance Corp.
“We appreciate the contributions of the associates included in this reduction, and we have taken great care to provide resources to assist them, including transition pay and benefits,” the company said.
