Amazing - 01/04/2008 -
American Home Mortgage lent mainly to people with good credit histories, yet offered loans with terms that were too easy. This does not make sense.
American Home, founded in 1987, by its own reckoning had become the 10th largest U.S. retail mortgage lender, originating $59 billion in loans last year. Who was watching the store front.
American Home shares traded around 76 cents Friday, compared with the $36.36 they fetched as recently as December. They are likely to be worth nothing in a bankruptcy. I agree.
I found some former employees spilling the beans here last summer -
CUT & PASTE FRAUD
Angry at 520 wrote:
I figure I can make some money as an "expert witness" in the upcoming class action lawsuits. I just want to return the gratitude that the AHM brass has shown me and my co-workers. I also want to make sure that justice is served, and that the guilty die in prison.
So article (ii) of the class action suit states:(ii) the Company was experiencing increasing difficulties in selling its loans and, therefore, was required to decrease prices, thereby reducing margins and profits.
Wait'll they find out that a good percentage of our woes came from old-fashioned cut & paste fraud. Can't get a borrower to sign a "corrected" TIL, just sign it yourself. Can't get a borrower to sign a 1003? Just sign that as well. Note incorrect? Cut and paste together one that the investor will buy.This was a culture of corruption from top to bottom. With the pressure to sell loans coming from the top.
So, I don't know if I'm unemployed yet or not, no one wants to be straight-forward with us. But tell you what, I'm gonna be straight with the plantiff's lawyers.Here's their info if anyone else wants in:Glancy Binkow & Goldberg LLP. Please contact to obtain a copy of the Complaint by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com/ .You are urged to contact Lewis Kahn, Managing Partner, KGS, via email at lewis.kahn@kgscounsel.comSee you in court.
CORPORATE CULTURE @ AHM ran deep..Check this out..
401K ERISA FRAUD
Jul 13, 2007 (This was back in the summer)
I worked for this company and they have great training and marketing, but the company is run by a bunch of crooked folks and losers. There are plenty of good people that work there and they are very innovative, but in the end it boils down to greed. I left the company willingly after we found out they were handling the 401k illegally. We finally figured out why our 401k profit each quarter was only going up a couple of bucks, because they were funding it last minute before statements went out.......real nice!
Can't Forget the Bonus..
Jul 11, 2007 (This was back in the summer)
Valley Sream, NY
Yeah responsable with no severance or notice so they MIGHT be able to land on there feet. How were the execs bonuses? nice? How bout thier salaries and stock options. There ok right? I hope so . B ecuse the tech guy doesnt have any. & the poor slob processer supporting her family doesnt have any or severance or bonus. Yeah, thats the right way of doing it..enron style.
We can go on and on but you get the picture. If your interest in their housing inventory check this out http://www.ahmhomes.com/Search.aspx
