Industry News

American Home’s explosive growth capped by bankruptcy

New York-based lender ranked in top 10 nationwide

American Home Mortgage Investment Corp., a publicly traded real estate investment trust that grew rapidly during the housing boom to become the nation's 10th-biggest residential mortgage lender, has filed for Chapter 11 bankruptcy protection. American Home employed about 7,500 workers at more than 550 loan production offices in 47 states and the District of Columbia. The New York-based lender funded 196,000 mortgage loans in 2006 totaling $58.9 billion -- more than double the $23.1 billion in loan production for 2004 -- for a 2.2 percent market share, according to the company's last annual report to investors. The company achieved this growth in part by acquiring smaller mortgage originators, and retaining and growing their loan production offices while eliminating centralized support operations and associated costs. But American Home was forced to close its doors when creditors who funded its loans withdrew their support. American Home stopped taking mortgage applications on Aug. 1, ...

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