Spring Break
District Shuts Down American Home Mortgage
Issue date: 8/27/07 Section: Neighborhood
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Commissioner Thomas E. Hampton of the District of Columbia Department of Insurance, Securities and Banking (DISB) announced that the agency has issued a Temporary Order to Cease and Desist to the American Home Mortgage Corporation, based on a determination that the financial condition of the company may endanger the public health or safety of the District of Columbia.
American Home Mortgage, which has 26 mortgage lender and broker licenses in the District of Columbia, was recently cut off from funding by the market and has filed for bankruptcy. The company has ceased taking applications or closing loans already approved, including nine District loans worth about $3 million that were scheduled to close in mid-August.
"DISB is committed to doing everything we can to mitigate the negative impact on District's borrowers in this unfortunate situation," Commissioner Hampton said. "No consumer should be financially harmed due to this company's current condition."
The order prevents American Home Mortgage or anyone acting on its behalf from engaging in the activities of a mortgage broker or lender in the District of Columbia. The order also requires that the company continues to provide services to the existing loans and to fulfill obligations of loans already in the commitment pipeline.
American Home Mortgages' license is due to expire on September 30 with no pending renewal applications. District residents who have questions or concerns about American Home Mortgage should contact DISB at (202) 727-8000.
The Government of the District of Columbia Department of Insurance, Securities and Banking (DISB) regulates all financial-service businesses in the District of Columbia. DISB has two overall missions: to provide fair, efficient and fast regulatory supervision of financial-service activities for the protection of the people of the District of Columbia; and to create conditions that will attract and retain national and international insurance, securities, banking and other financial-services businesses to the District. For more information, visit DISB on the Web at www.disb.dc.gov.
American Home Mortgage, which has 26 mortgage lender and broker licenses in the District of Columbia, was recently cut off from funding by the market and has filed for bankruptcy. The company has ceased taking applications or closing loans already approved, including nine District loans worth about $3 million that were scheduled to close in mid-August.
"DISB is committed to doing everything we can to mitigate the negative impact on District's borrowers in this unfortunate situation," Commissioner Hampton said. "No consumer should be financially harmed due to this company's current condition."
The order prevents American Home Mortgage or anyone acting on its behalf from engaging in the activities of a mortgage broker or lender in the District of Columbia. The order also requires that the company continues to provide services to the existing loans and to fulfill obligations of loans already in the commitment pipeline.
American Home Mortgages' license is due to expire on September 30 with no pending renewal applications. District residents who have questions or concerns about American Home Mortgage should contact DISB at (202) 727-8000.
The Government of the District of Columbia Department of Insurance, Securities and Banking (DISB) regulates all financial-service businesses in the District of Columbia. DISB has two overall missions: to provide fair, efficient and fast regulatory supervision of financial-service activities for the protection of the people of the District of Columbia; and to create conditions that will attract and retain national and international insurance, securities, banking and other financial-services businesses to the District. For more information, visit DISB on the Web at www.disb.dc.gov.
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