EXHIBIT 16.1 [ERNST & YOUNG LLP LETTERHEAD APPEARS HERE] November 15, 1996 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549 Gentlemen: We have read Item 4 of Form 8-K dated October 14, 1996, of Liberte Investors, Inc. and are in agreement with the statements contained in the second paragraph of Item 4 on page 2 therein. We have no basis to agree or disagree with other statements of the registrant contained therein. /s/ ERNST & YOUNG LLP ERNST & YOUNG LLP