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As Debts Mount, Mortgage Lender Flirts With Ch.11

Law360 (August 1, 2007, 12:00 AM EDT) -- So far, the mortgage lenders filing for Chapter 11 protection have all catered to customers with poor credit. But if its recent payment failures and company statements are any indication, American Home Mortgage Investment Corp. may soon become the first of the non-subprime lenders to do so.

In a Tuesday press release, the company cited liquidity issues triggered by the “unprecedented disruption” in the secondary mortgage industry.

That disruption, it said, had led to suspension of loan purchases by banks and limited access to credit for...
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