American Home Mortgage Investment (nyse: AHM - news - people ) Corp., the nation's 10th-biggest home lender, filed for bankruptcy protection and marked the latest sign of a distressed mortgage industry.
Also, National City Bank said Monday that it has stopped taking applications for home equity loans and lines of credit through mortgage brokers as problems in the mortgage industry continue to spread.
"This is one of a number of steps National City (nyse: NCC - news - people ) has taken in recent weeks to help ensure that originations are in line with existing and anticipated market conditions," the company said in a statement. "We are continuing to closely monitor the market and take the appropriate steps to best navigate market conditions." NCB is still writing these loans at the branch level. It is just that now you cannot get a NCB product from a mortgage broker.
So, if you are working with a Realtor who recommends a list of reputable mortgage providers, you may want to consider working with someone on that list. Because we in the real estate business know that homes and dreams can be lost at the last moment when buyers make a bad choice in lenders!