Ameriquest's Business, By the Numbers

By Baselinemag  |  Posted 2005-09-12 Print this article Print

Ameriquest Mortgage Base Case

Headquarters: 1100 Town and Country Rd., Orange, CA 92868

Phone: (714) 541-9960

Business: One of the nation's largest providers of sub-prime mortgages—loans for borrowers with less than perfect credit.

Chief Information Officer: Mark Sarago

Financials in 2004: The privately held company originated an estimated $24 billion in sub-prime loans and reported an estimated $2.1 billion in sales.

Challenge: Implement a sales management and pricing software system to rapidly process and fund new and refinanced home loans.

Baseline Goals:

  • Increase total loan volume by at least 12%, from $24 billion in 2004 to $27 billion in 2005.
  • Contribute to parent company Ameriquest Capital's push to increase loan volumes by 20%, from $83 billion in 2004 to more than $100 billion in 2005.
  • Increase head count by 36%, from 14,000 in 2004 to 19,000 in 2005.
  • Implement a single software system that determines a consistent, benchmark price for all borrowers' fees and interest rates.

Story Guide:

  • Ameriquest Home Loans: Cracking Under Pressure: Even in a fertile market, it's possible to set your sales goals too high.
  • Loan Rangers: Ameriquest became unusually successful digging up loan candidates others may have overlooked.
  • Settling Up: Ameriquest's hard-sell tactics worked but, say investigators, violated a series of consumer-protection laws.
  • Riding the Sub-Prime Wave: As the house market heated up, borrowers stretched themselves to foreclosure-threatening lengths; and lenders helped them.
  • No-Touch Funding: Believing in your applicants can go too far, and get you both in trouble.
  • Who's to Say: Automation was supposed to make loan approvals faster, easier and more accurate; did the system fail, or did the officers handling the loans?
  • Tighter Controls: Making requirements stiffer only works if enforcement gets tighter as well.
  • Penalties for Abuse: Ameriquest denies wrongdoing, relies on IT for process improvements, and may face penalties in the hundreds of millions from class-action suits.
  • Avoiding the New Restrictions: It's one thing to let borrowers overextend themselves; it's something else to deceive them into doing it.


    Submit a Comment

    Loading Comments...
    eWeek eWeek

    Have the latest technology news and resources emailed to you everyday.

    By submitting your information, you agree that baselinemag.com may send you Baselinemag offers via email, phone and text message, as well as email offers about other products and services that Baselinemag believes may be of interest to you. Baselinemag will process your information in accordance with the Quinstreet Privacy Policy.

    Click for a full list of Newsletterssubmit