American Home Mortgage to close

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Mortgage lender American Home Mortgage Investment said it will close today, in a release issued last night. The Melville, N.Y.-based company, which specialized in adjustable-rate mortgages, announced it would lay off all but 750 of its 7,000 employees. American Home Mortgage was until recently one of the largest and fastest-growing mortgage companies in the country; it saw its stock drop 89 percent in a single day earlier this week. Meanwhile, subprime lender Accredited Home Lenders Holding announced yesterday that it expected to file for bankruptcy. more [NYT] and more [Post]