Loan Offices

Philadelphia, PA: (Feb-25-08) American Home Mortgage Investment Corp. brought charges against Indymac Bancorp Inc., alleging that the company breached contract terms, putting a deal that was supposed to take over 83 loan offices idled by American Home's collapse into bankruptcy in 2007, in jeopardy. Company officials recently revealed that American Home Mortgage ended the dispute with Indymac. American Home officials stated that Indymac had approached American Home as it was teetering on the brink of bankruptcy, asked to take over 98 offices and demanded that the company get fast court approval of the transaction. Indymac has been doing business out of those offices since Aug. 8, 2007, just two days after American Home filed for bankruptcy. American Home had accused Indymac of stalling on its agreement to acquire the loan offices.

As part of the settlement reached, Indymac will walk away from 15 offices it previously agree to take over after agreeing to deposit an additional $1 million to cover potential damages resulting from that move. Under the original deal, Indymac agreed to take over 98 offices, and pay American Home $2 million. Records show that American Home, once among the country's biggest mortgage lenders, operated more than 500 loan offices in 47 states before it collapsed into bankruptcy in August 2007. The company has since halted its loan origination business and is liquidating its assets. [FORBES: BREACH OF CONTRACT]

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Published on Feb-26-08