American Mortgage Specialists, Inc. - Retail, Net Branch - Agency, FHA/VA, Alt-A, Subprime
We have received multiple reports that American Mortgage Specialists, Inc. (view snapshot), a Chandler, AZ based net branch operation has suddenly and unexpectedly shut down following the loss of a warehouse line-of-credit which eliminated their capacity to fund loans as a mortgage banker.
According to reports we've received from some branches, there was no announcement made via email or phone from the corporate office, and employees of outlying locations only learned of the company's closure gradually throughout the week from sporadic emails sent by staff in the home office wishing their co-workers "Goodbye" and "Nice working working with you." One contributor wrote:
"All loans are dead and so is the company! They gave no notice to employees and simply cleaned out offices over the weekend."
Another account gives a bit more background:
Information on the size of the company's operations was varied, with tipsters reporting upwards of 100 offices at peak dwindling to less than 10 of late. Employees at peak numbered around 1,200 according to both Manta and Hoovers but inside sources tell us there were likely 50 or less left when the company closed its doors. Reports of recent volume exceeding $20 million per month echo 2006 volume which reached an average of more than $38 million per month although intervening years showed much lower numbers.
We're told repurchase requests were the catalyst for the warehouse lender's withdrawal and the company's subsequent decision to close shop. Owner Scott Powers was reported as saying the company could no longer contain its losses.
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.