American Home Gets Loan Sales Approval
American Home Mortgage Investment has received approval from the U.S. Bankruptcy Court for the District of Delaware to auction off certain loans owned by two affiliates of American Home, Broadhollow Funding and Melville Funding. Under the court's approval, American Home said it would sell approximately 5,700 whole mortgage loans owned by the two units on Sept. 11.
The auction was scheduled to be conducted at the offices of Young Conaway Stargatt & Taylor, Wilmington, Del.
The auction procedures agreement was between American Home Mortgage Investment Corp., AHM Investment and AHM Servicing, all of which are subject to the Chapter 11 bankruptcy proceedings. As this newspaper's affiliate National Mortgage News reported at the time, American Home relied upon $9 billion in warehouse lines of credit and serviced $54 billion of home loans, including many owned by Fannie Mae and Freddie Mac.
It was the nation's 21st largest servicer of prime credit quality home loans. The company's servicing rights included $5.6 billion of alt-A loans and $17.8 billion of second liens. (c) 2007 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com/