LAWFUEL – The Legal Newswire – American Home Mortgage Holdings Inc. has “started to get bombarded” with demands from its lenders that it hand over home loans it’s servicing, an attorney for the company said Monday, the Chicago Tribune reports.
Meanwhile, Countrywide Financial Corp., the nation’s largest mortgage lender, sought to reassure customers that the liquidity problems dogging its mortgage operations were not affecting its banking unit.
The clamor from lenders is complicating American Home’s attempt to liquidate its assets in an orderly fashion, the attorney, John T. Dorsey, said at a hearing in U.S. Bankruptcy Court in Wilmington, Del.
One of the country’s largest home lenders, American Home filed for bankruptcy Aug. 6, with plans to shut down its business under court protection. Those plans, Dorsey told the judge presiding over the case, did not include “running in here every day” to fend off lenders anxious to grab their collateral.
On Friday, Impac Funding Corp. and Deutsche Bank’s DB Structured Products Inc. initiated actions similar to those already begun by Morgan Stanley and Credit Suisse First Boston. Dutch bank ABN Amro NV also has filed papers staking a claim to $146 million worth of mortgages that American Home is servicing.