Ellington Management Group LLC could be a likely buyer of one, or several, of Orange, Calif.-based ACC Capital Corp.'s subprime lending units, sources say. Depending on which parts of ACC it buys, a purchase would grant the Greenwich, Conn.-based fund manager a substantial subprime mortgage originator, although the company has considerably scaled back its originations. The manager already holds a substantial portion of Ameriquest residuals, according to one source. AmeriCredit Corp. last month bought ACC's auto lending branch Long Beach Acceptance Corp. for roughly $283 million. Ameriquest settled predatory lending allegations last year, agreeing to shell out $325 million. Several months later, the lender announced a "reorganization" of its retail unit that would result in the loss of 3,800 jobs and 229 branches. JPMorgan Chase & Co., which ACC hired to handle the sale of Long Beach, is reportedly handling the prospective sale of Ameriquest and Argent.
Troubled subprime lender Mortgage Lenders Network USA is looking to sell its subprime servicing platform, a source says. The Middletown, Conn.-based lender stopped funding new loans last week, when it said it was exploring "strategic alternatives" to its wholesale lending business.