EXHIBIT 99.7


                           AAMES FINANCIAL CORPORATION

              _________________ SHARES OF SERIES D PREFERRED STOCK
                  ISSUABLE UPON EXERCISE OF SUBSCRIPTION RIGHTS

--------------------------------------------------------------------------------
 THE SUBSCRIPTION RIGHTS ARE EXERCISABLE UNTIL 5:00 P.M. EASTERN STANDARD TIME
                    ON FEBRUARY __, 2002 UNLESS EXTENDED.
--------------------------------------------------------------------------------

January __, 2002

To:  Securities Dealers, Commercial Banks, Trust Companies, and Other Nominees

         This letter is being distributed to securities dealers, commercial
banks, trust companies and other nominees in connection with the offering by
Aames Financial Corporation of an aggregate of _________ shares of Series D
Preferred Stock, par value $0.001 per share ("Series D Stock"), of Aames
Financial Corporation, at a subscription price of $0.85 per share of Series D
Stock (the "Subscription Price"), pursuant to the exercise of non-transferable
subscription rights ("Subscription Rights") initially distributed to all holders
of record of shares of Aames Financial Corporation's Common Stock, par value
$0.001 ("Common Stock") as of the close of business on January __, 2002. The
Subscription Rights are described in the enclosed prospectus and evidenced by a
Subscription Certificate registered in your name or in the name of your nominee.

         Each beneficial owner of shares of Common Stock registered in your name
or the name of your nominee is entitled to 2.56 Subscription Rights for each
share of Common Stock owned by such beneficial owner. Shareholders will not
receive fractional Subscription Rights, but instead Subscription Rights will be
rounded up to the next largest full Subscription Right.

         We are asking you to contact your clients for whom you hold shares of
Common Stock registered in your name or in the name of your nominee to obtain
instructions with respect to the Subscription Rights.

         Enclosed are copies of the following documents for you to use:

         1.       Prospectus;

         2.       Form of Letter from Aames Financial Corporation to its
Shareholders;

         3.       Instructions for Use of Aames Financial Corporation
Subscription Certificates;

         4.       Notice of Guaranteed Delivery;

         5.       A form letter which may be sent to your clients for whose
accounts you hold Common Stock registered in your name or in the name of your
nominee;

         6.       Beneficial Owner Election Form, on which you may obtain your
clients' instructions with regard to the Subscription Rights;

         7.       Nominee Holder Certification Form; and

         8.       Return Envelope addressed to Mellon Investor Services LLC as
Subscription Agent.

         Your prompt action is requested. The Subscription Rights will expire at
5:00 P.M., Eastern Standard Time, on February __, 2002 (as it may be extended,
the "Expiration Date").

         To exercise Subscription Rights, properly completed and executed
Subscription Certificates and payment in full for all Subscription Rights
exercised must be delivered to the Subscription Agent as



indicated in the prospectus prior to the Expiration Date, unless the guaranteed
delivery procedures described in the prospectus are followed in lieu of
delivery of a Subscription Certificate prior to the Expiration Date.

         Additional copies of the enclosed materials may be obtained by
contacting Mellon Investor Services LLC toll free at 888-566-9477.

Sincerely,



AAMES FINANCIAL CORPORATION

         NOTHING HEREIN OR IN THE ENCLOSED DOCUMENTS SHALL CONSTITUTE YOU OR
ANY PERSON AS AN AGENT OF INSPIRE INSURANCE SOLUTIONS, THE SUBSCRIPTION AGENT OR
ANY OTHER PERSON MAKING OR DEEMED TO BE MAKING OFFERS OF THE COMMON STOCK
ISSUABLE UPON VALID EXERCISE OF THE RIGHTS, OR AUTHORIZE YOU OR ANY OTHER
PERSON TO MAKE ANY STATEMENTS ON BEHALF OF ANY OF THEM WITH RESPECT TO THE
OFFERING EXCEPT FOR STATEMENTS MADE IN THE PROSPECTUS.