$325M Set Aside for Ameriquest Settlements

ACC Capital Holdings Corp., Orange, Calif., says it has set aside $325 million to settle claims stemming from the residential lending practices of Ameriquest Mortgage, its retail subprime affiliate.ACC issued a statement about the legal reserve on the same day that President Bush nominated ACC owner Roland Arnall to be ambassador to the Netherlands. In the statement, ACC -- parent of both Ameriquest Mortgage and wholesale giant Argent Mortgage -- said it has "recorded a provision" in connection "with previously announced discussions with representatives of the financial regulatory agencies or attorneys general offices of thirty states." The company said the $325 million is the maximum amount it will have to pay to the 30 states. The company, which recently settled lending allegations with Connecticut, noted that it has not yet reached a definitive final agreement with the 30. "There can be no assurance such an agreement will be reached," ACC says, adding that it is "focused on resolving the issues under discussion with these agencies so as to reach a resolution that is fair to customers and fair to the company."