Privately held ACC Capital Holdings, the parent company of Ameriquest Mortgage Co., last week announced the closure of 229 retail branches, resulting in job loss for roughly 3,800 of its employees - representing about 70% of its retail staff. The move constitutes the third round of layoffs at the company since November.

Ameriquest, the nation's largest subprime mortgage lender, is expected to continue meeting with rating agencies this week. Rating agencies and the market are trying to determine the implications - both for the originator's financial wellbeing and its servicing capabilities - of its decision to shut down nearly all of its retail origination branches.

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