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MONDAY, NOVEMBER 23, 2009
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American Home Mortgage Closes Its Doors

ARM specialist's efforts can't hold off fallout from worsening crisis

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(Newser) – The battered mortgage-lending industry will suffer another blow today as American Home Mortgage shuts down, making it the latest company to go under as home loans go bad across the country. AHM's troubles were common knowledge, the Times reports, but the speed of its downfall was unexpected. “We have no realistic alternative,” says the CEO.

The lender reported record earnings—and appeared to be on track to rebound—at the beginning of the year, but things went sour quickly. AHM was one of the largest and fastest-growing mortgage companies in the country, but its focus on less qualified borrowers and ARMs combined with industry turmoil and the housing downturn to create an unsolvable problem.

A home for sale shows the owner has lowered the asking price, Tuesday, July 31, 2007, in Cincinnati. With the housing and mortgage industries plunging deeper into distress, investors around the world are losing their stomach for risk. This means it will cost more to borrow, which could harm the...
A home for sale shows the owner has lowered the asking price, Tuesday, July 31, 2007, in Cincinnati. With the housing and mortgage industries plunging deeper into distress, investors around the world...   (Associated Press)
US NEWS FORECLOSURE-SCAMS 4 MCT
US NEWS FORECLOSURE-SCAMS 4 MCT   (KRT Photos)
  (American Home Mortgage)
A home is offered for sale in Riverside, Calif. Monday, July 23 2007. Wall Street suffered one of its worst losses of 2007 Thursday July 26, 2007, leading a global stock market plunge as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones...
A home is offered for sale in Riverside, Calif. Monday, July 23 2007. Wall Street suffered one of its worst losses of 2007 Thursday July 26, 2007, leading a global stock market plunge as investors succumbed...   (Associated Press)
A home is offered for sale in Riverside, Calif. Monday, July 23 2007. Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market plunge as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones industrials closed down...
A home is offered for sale in Riverside, Calif. Monday, July 23 2007. Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market plunge as investors succumbed to months...   (Associated Press)
A home is offered for sale in Riverside, Calif. Monday, July 23 2007. Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market plunge as investors succumbed to months of worry about the mortgage and corporate lending markets. The Dow Jones industrials closed down...
A home is offered for sale in Riverside, Calif. Monday, July 23 2007. Wall Street suffered one of its worst losses of 2007 Thursday, leading a global stock market plunge as investors succumbed to months...   (Associated Press)
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Blog reactions

"I am predicting more than three million foreclosures in the next two years"
Minnesota Real Estate - the Don Edam Group Blog

"I can't do much from my keyboard but offer my best wishes to those affected by today's move"
Housing Wire


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