Waiting to close on your loan? AHM says think again

When American Home Mortgage Investment ran up against margin calls and lack of funding the company was forced to break their agreements on funds in the pipeline for loan closings. That adds more bad news for homebuyers with pending applications, as CIT also announced they would exit the mortgage business. AHM was forced to pull $300 million of home loans already agreed on Monday and was preparing to break its agreement on up to $500 million more yesterday.

Borrowers with pending mortgage applications, and those whose closings have been delayed, are very nervoous about the situation.

One thought on “Waiting to close on your loan? AHM says think again

  1. Almost none of American Home Mortgage’s $58.9 billion in loans last year were subprime. American Home Mortgage specializes in adjustable-rate mortgages, and also lends to so-called Alt-A borrowers, or borrowers who cannot document their income.

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