American Home Mortgage is laying off thousands of employees according to Originator Times. Originator Times continues....
by saying....With the demise of the mortgage giant American Home Mortgage looming, the company admitted yesterday that is was unable to fund approximately $800 million in loans promised to borrowers Monday and Tuesday. Loans that were not funded included retail loans and loans by their wholesale division American Brokers Conduit. The Originator Times first broke the news that American Home was not funding new loans on Monday. Late Tuesday, the company admitted that it was unable to fund loans on Monday and Tuesday of this week. However, employees within the company on the promise of anonymity, have reported to the Originator Times that the company would not be able to fund loans on Wednesday as well, and that the company does not anticipate the resumption of funding new loans unless an agreement to acquire the company was worked out. Although an acquisition now appeared unlikely since talks with IndyMac, the nation's second largest mortgage originator, to acquire the company have reportedly broken down. The fate of the 7,627 employees is yet to be determined. If the company seeks an "orderly liquidation" of its assets, as was offered as one option in the latest statement from the company it may be possible for some employees to keep their jobs
No tongue and cheek here....I will miss this company. They have provided great competition within our market. I have friends that I used to work with at prior companies that went on to "AHM".
REALTORS....Don't forget....your reputation is on the line if you refer your business to lenders who can't fund loans. In other words, just because a lender says that it can get a deal done...especially a no income verification loan with a high LTV it doesn't mean that the loan will be able to be funded. AHM made the same promises, but wasn't able to deliver Monday or Tuesday, thus leaving many unsatisfied customers perplexed and at an impasse for their home closings....Your reputation is on the line....pick a lender who will be there to service you and your clients....not just saying that they can get a deal done.