Banks Pull Plug On American Home ; Troubled Mortgage Lender Near Bankruptcy

The Record, Bergen County, NJ › August 02, 2007

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Summary

NEW YORK American Home Mortgage Investment Corp. edged closer to bankruptcy Tuesday, as its solvency woes killed a rally on Wall Street and renewed fears of worsening credit quality in the troubled mortgage market.

The struggling mortgage lender said its financial backers have essentially pulled the plug. The Wall Street banks that lend American Home Mortgage money for home loans which include firms like UBS AG, Bear Stearns Cos., and JPMorgan Chase & Co. will not extend the company any more money, and some have demanded back they money they have lent.

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Extract

Banks Pull Plug On American Home ; Troubled Mortgage Lender Near Bankruptcy

American Home Mortgage has 22 licensed branches in New Jersey, where it made $1.2 billion in home loans last year, according to the state Department of Banking and Insurance...

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