10th largest Mortgage Lender To Close

The housing market collapse claimed another company and 7000 jobs today as American Home Mortgage closed most operations effective today.

In a statement, American Home on Thursday night confirmed earlier reports that it was ceasing most operations. The company said its employee base will be reduced to about 750 workers, down from the 7,409 it reported at the end of last year. The terminations are effective Friday.

American Home originated $59 billion in loans last year, and mostly to people with better credit than risky subprime borrowers. About half of those mortgages were adjustable-rate loans, whose defining feature is an interest rate that can be adjusted upward.

This is just the latest in a string of closings and another Accredited Home Lenders is also close to bankruptcy. This situation is not going away and the pain this will cause the middle and lower classes is just beginning.