American Home Mortgage (AHM) is Now Insolvent, Thousands of Jobs Lost

American Home Mortgage Investment Corp announced yesterday that the company is insolvent as it doesn’t have the money to pay back its lender nor does it have the credit line to pay back its borrowers.

American Home Mortgage (AHM) is the biggest mortgage bank to go bankruptcy in over a year. This move has send shockwaves through the stock market and financial industry as the company crisis rages on.

American Home Mortgage becoming insolvent caused the Dow Jones industrial average to fall 147 as it represent ongoing concerns over the state of US housing market and real estate market

The fact that millions of dollars in investors money has been lost in American Home Mortgage is not the only downside to this insolvency. Roughly 7,627 employees — including about 1,460 in Melville where American Home Mortgage is based may be without jobs due to the insolvency of AHM.

What do you think about American Home Mortgage becoming insolvent?

Will more people in the US real estate market lose their jobs?

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