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September 28, 2007

American Home Mortgage ... again

I thought it was over, I really did, but there's more news on the situation that started when American Home Mortgage Investment Corp. bounced some checks meant for homeowners' property taxes. (In the last episode, the lender said about 500 checks were "dishonored" because of a bank error. In the second to last episode -- pre-blog -- it sent certified checks to local jurisdictions to make good.)

Today, Sarah Bloom Raskin, Maryland's commissioner of financial regulation, told me the number of checks the lender bounced in the state was 564. That would suggest the problem was here only. (The company did not return a Sun call seeking answers.)

Bloom Raskin said the lender, which filed for bankruptcy in August, told her the account used for the payments was mistakenly frozen by a bank and has since been unfrozen. But she said she counted 36 checks for properties in Baltimore County and Prince George's County that still needed to be made good, at least as of Wednesday. Baltimore County said today that AHM already replaced all the bounced checks with certified funds.

Property taxes are due Sept. 30.

The other jurisdictions originally affected, according to Bloom Raskin: Baltimore City, the town of Bel Air, Frederick County, the city of Hagerstown, Queen Anne's County, Washington County and Wicomico County.

Bloom Raskin said the state would continue to investigate. "This is not an example where customers are to blame," she said.

Posted by Jamie Smith Hopkins at 5:28 PM | | Comments (0)
        

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
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