AmeriQuest Mortgage came to market with a $1.2 billion series 2005-R2 deal last week that was apparently unhindered by the company's highly publicized legal troubles earlier this month. In the beginning of February, just as the ABS West 2005 conference was underway, the Los Angeles Times broke that AmeriQuest was being sued in California and 20 other states for improper lending practices ranging from forging documents to lying about borrower's income, in order to qualify them for loans they otherwise could not afford. According to one source, the company made sure to cover its tracks and smooth the way for last week's transaction, which priced inside of initial guidance.

"They talked to investors and made the market comfortable," said a source close to the deal.

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