EXHIBIT 16.1





March 30, 2005



Securities and Exchange Commission
Washington, D.C. 20549


Ladies and Gentlemen:


We were previously principal  accountants for Matrix Bancorp, Inc. (the Company)
and, under the date of March 14, 2005, we reported on the consolidated financial
statements  of the Company as of and for the years ended  December  31, 2004 and
2003.  On  March  24,  2005,  our  appointment  as  principal   accountants  was
terminated.  We have read the Company's  statements  included under Item 4.01 of
its Form 8-K dated March 24,  2005,  and we agree with such  statements,  except
that we are not in a position to agree or disagree with the Company's statements
that (1) effective March 24, 2005, the Company engaged  McGladrey & Pullen,  LLP
(McGladrey)  as the  Company's  principal  accountants  to audit  the  Company's
financial  statements  for the year ending  December  31,  2005,  (2)  McGladrey
replaces  KPMG  LLP,  (3)  the  decision  to  change  the  Company's   principal
accountants was approved by the Company's Audit Committee on March 24, 2005, (4)
the Company's Audit Committee  unanimously approved the appointment of McGladrey
& Pullen, LLP as the Company's independent registered public accounting firm for
the year  ending  December  31,  2005,  and (5) during the  fiscal  years  ended
December 31, 2003 and 2004 and the  subsequent  interim period prior to the date
of  McGladrey's  appointment,  neither  the  Company  nor  anyone on its  behalf
consulted  with  McGladrey  regarding (i) either the  application  of accounting
principles to a specified transaction, either completed or proposed, or the type
of audit opinion that might be rendered on the Company's  financial  statements;
or (ii) any matter that was either the subject of a disagreement  (as defined in
paragraph (a)(1)(iv) and the related instructions to Item 304 of Regulation S-K)
or a  reportable  event (as  described  in  paragraph  (a)(1)(v)  of Item 304 of
Regulation S-K).

Very truly yours,



KPMG LLP