Comments on: More Than 7000 Employees Out, American Home Mortgage

By: Paul Knag

Paul Knag — Sun, 05 Aug 2007 07:28:03 +0000

I’m still reeling from it all, I guess the full story won’t be untangled for a while.

For example, AHM owns a thrift (American Home Bank). I haven’t been given a clear explanation as to why the thrift could not have helped with the cash flow when the warehouse lenders balked. Regardless, the whole mortgage banking model has now been thrown up as endangered. BlownMortgage.com just posted a nice piece about risks of being an (overly) aggressive mortgage banker.

By: webstertm

webstertm — Sat, 04 Aug 2007 03:19:23 +0000

I am sorry to hear about so many people losing their jobs like that. Although, I have always said that getting rid of loan officers is a sign of growth. I am reminded of my wife’s statement that she wanted her hair to grow longer so she she had to trim off the dead ends. It works like that in more places than just hair. It sucks that the market has been like this lately, but let us remember it is not as bad as we are expected to believe it is. Even in nature there is a crunch before growth. I am looking forward to the growth.

By: Noel

Noel — Fri, 03 Aug 2007 17:47:54 +0000

Tough deal for all of us, more so for the employees of AHM. Has anyone heard from Paul?

By: ConsumerMortgageReports

ConsumerMortgageReports — Fri, 03 Aug 2007 05:21:57 +0000

It is in our opinion that there will be a contraction with the pass thru companies like American Home Mortgages (they are a conduit and sell all loans to Countrywide Taylor Bean and Wells Fargo). A Wells rep said that AHM shared greatly in the profits but slightly in the risks.

If you look at these subprime mortgage problems, those thoughts are echoed by their sponsors as well.

They all offer the loan make the money and pass the risks to the Countrywide’s Taylor Bean’s and Wells Fargo’s and Bear Stearns of the finance world.