Posted by MikeC/NY on 8/3/07 7:39pm
Msg #203902

American Home Mortgage is closing its doors

Word came out today that they are filing for bankruptcy. About 6500 being laid off, 1300 of those here on Long Island where AHM is (was?) headquartered. Employees here were given one day's notice, and it's unclear whether they will be paid. Mortgages in the pipeline that were approved will not be funded, leaving borrowers to scramble and find another lender.

This was not a sub-prime lender, but the fallout from that meltdown is starting to roll up the food chain. Buckle up, guys - this is going to be a wild ride before it's over...

Reply by ToniK on 8/3/07 7:47pm
Msg #203903

Thanks god they sold my loan to National City Mortgage...

Reply by Loretta Reed on 8/4/07 8:09am
Msg #203949

An attorney friend of mine owns a title company and I did all of their title work here on the eastern shore of Maryland. He called me and told me that none of the loans are going to fund that were in the pipeline and none of the title work and closings that we did will be paid for.
He is a great man and is going to pay us any way, even though he is not getting paid.

Reply by Shannon_Va on 8/4/07 2:54pm
Msg #203990

They were given more than a day. I knew about what was going on Tuesday. They were told then that Friday would probably be the last day.
It still really sucks for them. There were alot of really good people working there. I dealt with their wholesale division, american brokers conduit. Their closing department was fabulous. I will really miss working with them. I wish them the best of luck.

Reply by MikeC/NY on 8/4/07 8:12pm
Msg #204016

The layoffs were being rumored earlier in the week, but weren't announced until Thursday - after the CEO sold all his stock. He sold at about $1.40; stock dropped to .69 after the announcement. Not quite Enron or MCI, but the SEC is looking into it...

I'm sure they all saw the writing on the wall; reports say there were vendors coming in and removing office equipment earlier in the week, so you'd kind of have to be brain-dead to not see it coming.... Our local economy is going to take a bit of a hit because of this - tossing that many people into the unemployment pool in a tight job market is never a good thing. I hope they all find a soft landing somewhere.