According to Reuters, American Home Mortgage will be closing permanently this Friday. The news broke today after an email from CEO Michael Strauss to employees was widely circulated. The company now faces the lenders cutting off access and will likely have liquidate assets to have any hope of reemerging as the goliath it once was. At least one analyst, Steve DeLaney of JPM Securities, suggested that bankruptcy would be the next step. Another one bites the dust, and the number of lenders shutting their doors only threatens to increase in the coming weeks. It’s as if the U.S. mortgage community is about to face a hurricane of epic proportions. There is a gentle breeze blowing now, but it will only get stronger…board up your windows, lock your doors, batten down the hatches and pray for the best.
