American Home Mortgage sells loan servicing assets to AH Mortgage Acquisition

By Jennifer Lanning Drey

Portland, Ore., Sept. 25 - American Home Mortgage Investment Corp. executed the sale of its loan servicing assets to AH Mortgage Acquisition Co., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The purchase price includes $6 million in cash and an amount that will be based on the actual balance of mortgage loans being serviced by American Home at the close of business on the day before the initial sale closing.

AH Mortgage will deposit $15 million in immediately available funds in an escrow account.

As previously reported, American Home will continue to service the loans following the initial closing until AH Mortgage obtains its license to own a loan servicing business.

American Home said in a previous motion that AH Mortgage is arranging third-party financing to pay a portion of the purchase price and to fund the working capital needs of the servicing business during the interim period.

American Home, a Melville, N.Y.-based real estate investment trust focused on residential mortgage loans, filed for bankruptcy on Aug. 6. Its Chapter 11 case number is 07-11047.

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