American Home, Fannie Mae Agree To Servicing Pact

Law360, New York (August 28, 2007, 12:00 AM EDT) -- Bankrupt mortgage lender American Home Mortgage Inc. has reached an agreement with Fannie Mae under which the lender will continue to service $5.2 billion in government-backed loans for the next few months.

In a motion filed with the U.S. Bankruptcy Court for the District of Delaware on Friday, AHM asked for court approval of its “hard-fought concession” from Fannie Mae, which has agreed to allow the lender to service its loans until it sells its valuable loan servicing arm. But the stipulation also said that AHM...
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