American Home to Auction Off Servicing Business Today
According to court documents provided to me, bankrupt American Home Mortgage Holdings, Inc. has auctioned off its loan servicing platform today at a qualified auction scheduled for 10am EDT. All bidders were to have submitted their bids by September 6, and while I've heard numerous names suggested among the bidders, I can't provide those names on this blog. Observers have noted to me that AHM's servicing business should fetch a strong bid, however, given the sheer size of the mortgage portfolio and the fact that many I've spoken to felt that the company's bankruptcy was fueled more by investor "panic" than by business fundamentals. Approval of the sale is scheduled for September 17, according to the court order. Vendors currently working with American Home's servicing shop will undoubtedly have an interest in seeing who the expected new owner of the servicing platform will be, and what it will mean for their own operations going forward. I'll report on that once a confirmation is available.