A Bankruptcy court has issued a ruling allowing the now defunct American Home Mortgage to refund some $650,000 in application and other fees it collected from more than 1,000 customers who never received loans because the company went bust!

The Judge's order was signed off earlier this week which allowed AM to return the funds and get out from under the pressure being put on it by State consumer protection officers.

If you have a client who lost money, please make sure they are aware of this ruling so they can get their funds back!

Other State officials gave AM a friendly reminder that they expect funds returned too.

AM said it "decided" to return the money because what they called "regulatory actions", if allowed to continue could have "significant ramifications" on the company's ability to sell off assets. Nice reasoning! Sheesh!

One executive testified that borrowers who were caught between loan approval and funding merely received a letter telling them where to try and get their loans funded from other institutions. No mention was made of the monies they had already spent with AM.

Seriously now - people need to go to jail over this!