Speculation about a possible sale of Orange-based ACC Capital Holdings Corp.’s Ameriquest took a new turn Thursday.
A unit of JPMorgan Chase & Co. is shopping Ameriquest to hedge fund investors, according to reports in the New York Post and trade publication Asset Securitization Report.
Word of JPMorgan’s hiring to shop ACC’s mortgage units first was reported in late 2006.
The latest news expands the shortlist of possible suitors beyond other mortgage companies, private equity investors and investment banks.
As recently as 2005, Ameriquest was the No. 1 lender to homebuyers with imperfect credit. The company has scaled back dramatically in the past amid a restructuring and a downturn in the subprime mortgage business.
According to the latest reports, potential Ameriquest buyers could include Ellington Capital Management, a Greenwich, Conn.-based hedge fund.
No bids have been made for the subprime lender to date, the New York Post said.
Ellington manages about $4.5 billion, including more than $3 billion related to mortgage bonds. Many are based on riskier subprime mortgages.
The subprime lending sector is undergoing consolidation.
Fort Worth, Texas-based AmeriCredit Corp. recently wrapped up its buy of ACC’s Long Beach Acceptance Corp. for $282.5 million. Long Beach Acceptance makes auto loans to buyers with credit problems.
In November, H & R; Block Inc. said it is considering a sale of its Irvine-based Option One Mortgage Corp., which makes subprime home loans.
In October, Irvine’s ECC Capital Corp. said it was selling its subprime loan business to Bear Stearns Cos., for $26 million. That deal is expected to close early this year.
Ameriquest’s longtime local competitor, Irvine-based New Century Financial Corp., appears to have gotten a boost from the news of a new group of potential buyers in the subprime sector. Its shares rose 4.2% in trading Thursday.
