Americast Mortgage Company was one of the top lenders on the US credit scene. Founded in 1979 in California as a bank then called Long Beach Savings and Loan, it converted to become a mortgage lender in 1994 and was renamed Long Beach Mortgage Co. The company had two divisions and its retail portion was privately held. and it was called Ameriquest Capital. Its wholesale portion was publicly traded and was called Long Beach Mortgage.
Americast Mortgage Company was a private company owned by Mr. Roland Arnall of ACC Capital Holdings. In 1999, Washington Mutual purchased Long Beach Mortgage. In 2007, Citigroup acquired the wholesale division of Americast Mortgage Company.
It was one of the first mortgage companies to use computers to do business. This was an effective way to speed up loan processing. Ameriquest Mortgage CompanyâEUR(TM) services included providing business solutions, direct lending, finding alternatives for effective business relationships, and providing financial and educational means to its clients.
When Americast Mortgage Company was still in business, it used to offer two types of mortgages. These were the Fixed Rate Mortgage and the Adjustable Rate Mortgage. The fixed-rate mortgage has a fixed interest rate and a single monthly payment of principal and interest for the entire term of the loan. The adjustable rate mortgage was viable for people who tolerated high risk and wanted lower initial monthly payments.
The company was well known in the United States as it advertised itself well through television, blimps, and its sponsorships of NASCAR drivers and concerts. They even had a slogan saying that they were the proud sponsors of the American dream.
Americast was also widely known for its community programs and charity work. They believed that home ownership, youth development, and financial literacy were the building blocks of ideal communities. And with this belief they created specialized programs for each block. For financial education, Americast created programs that help youth develop planning and money management skills. Homeownership programs invest efforts to provide low-income families with the opportunity to own their own homes. Youth Development supported educational services and programs aimed at giving young adults the tools to become productive individuals.
During the latter part of 1995, Americast had problems with its customers because they complained about fraudulent mortgage servicing. In 1996, the company, in an attempt to salvage its tarnished image, agreed to a $325 million settlement for clients. And while it was seen as a win for his clients, it did little to lessen the damage done as most properties were already in foreclosure. Ameriquest Mortgage Company is no longer accepting loan applications since its sale to Citigroup in 1997.
