Is American Home Mortgage closing?

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.77 Dollars($)

Hello everyone,

I heard something very stunning today. American Home Mortgage is closing it's business. is that so??

Guest 0.10 Dollars($)

Most likely so..

sara

That's true Jenkin. They have even filed for bankruptcy and it's sad but the fact that their employers are now looking for new jobs.

The figures are alarming!!

7000 employees in total at American home mortgage but only 750 being retained till last week.

Guest 0.10 Dollars($)

Closing down of business by American Home Mortgage is the largest casualty of the housing downturn. This downturn is mostly because of the increased number of delinquencies in the subprime market.

Michael Strauss, American Home Chief Executive has said that:

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

It is really shocking to know that American Home Mortgage Investment Corp. is closing down.

I heard that AHM lent mainly to borrowers with good credit histories but loans were also offered with terms that were sometimes too relaxed. Many loans were "Alt-A", & near about half were adjustable rate mortgages, for which rates had adjusted to levels beyond the means of borrowers.

Miller

Niicss · Joined: 03 Oct 2005 Posts: 1033 153.96 Dollars($)

AHM has filed for Chap 11 bankruptcy protection in Wilmington, Del.

Many who had taken a mortgage from them might be afraid about what will happen. Let me tell you that bankruptcy filed by lenders do not affect the status of mortgages already on the books.

It simply means that financial institutions will most likely buy company's loans when their assets are auctioned off. Bankruptcy filing by lenders does not imperil people’s homes.

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