Commissioner Thomas E. Hampton of the District of Columbia Department of Insurance, Securities and Banking (DISB), today announced that the agency has issued a Temporary Order to Cease and Desist to the American Home Mortgage Corporation, based on a determination that the financial condition of the company may endanger the public health or safety of the District of Columbia.

American Home Mortgage, which has 26 mortgage lender and broker licenses in the District of Columbia, was recently cut off from funding by the market and has filed for bankruptcy. The company has ceased taking applications or closing loans already approved, including nine District loans worth about $3 million that were scheduled to close in mid-August.

“DISB is committed to doing everything we can to mitigate the negative impact on District’s borrowers in this unfortunate situation,” Commissioner Hampton said, “No consumer should be financially harmed due to this company’s current condition.”

The Temporary Order to Cease and Desist prevents American Home Mortgage or anyone acting on its behalf from engaging in the activities of a mortgage broker or lender in the District of Columbia. The order also requires that the company continues to provide services to the existing loans and to fulfill obligations of loans already in the commitment pipeline. 

American Home Mortgages’ license is due to expire September 30, 2007, with no pending renewal applications.  Any District residents who have questions or concerns about American Home Mortgage should contact DISB at (202) 727-8000.