American Residential Investment Trust: This was a residential mortgage company that was first based in Irvine, California. This company was the parent corporation of American Mortgage Network (Am Net) every person who was involved in this business knew everything there was to know about mortgage banking and any other financial service, this was a prerequisite for employment with this company, as the corporation was involved in subprime mortgages and there assets, an extremely risky and highly profitable business, when done the right way.
In May of 2003 American Residential Investment Trust discontinued its REIT status after years of financial up’s and down’s, paying out share holders and investors alike, while leaving the business and mortgage financing up to American Mortgage Network which was a wholly owned portion of American Residential Investment Trust. In 2004 American Mortgage Network had $1.4 billion dollars in warehouse borrowing, and was able to do mortgage business in all 49 mainland states. American Mortgage Network also had 5000 real estate brokers that worked for them all over the country; it seemed as if the company was well on its way to a profitable future.
Due to the fact that American Residential Investment Trust was no longer a REIT, it operated only as the parent company to American Mortgage Network, which was founded in 1997; this company was based in California as well. American Mortgage Network as used to underwrite mortgages, provide financing for first time home buyers , interest only loans and home equity loans, which has become an extremely risky business in the past few years.
In 2005 The Wachovia Corporation bought American Mortgage Network, and then in 2008 the banking giant Wells Fargo bought Wachovia, merging the two companies’ together. American Mortgage Network and Wachovia are now owned wholly by Wells Fargo Financial, but still operate under the Wachovia name, creating a very extensive financial lending center, who own over $1.3 trillion dollars of assets across the country, making it one of the largest lending centers in the USA today. Wells Fargo is one of the Country’s leading mortgage and home equity loan providers to this day.
American Mortgage Network and American Residential Investment Trust are both products of the subprime mortgage failures; the companies have been bought and sold to bigger finical institutions that invest in other aspects of lending as well as subprime mortgages, making them more solvent and secure. Wells Fargo, Wachovia and American Mortgage Network have competitors in: Citi group INC, JPMorgan Chase & co and Bank of America Corporation. These are now the biggest banks in the United States, which have survived the recession and the subprime mortgage collapse; residential mortgage lending is a tough business and has seen many ups and downs throughout the years.
| Tags: American, business, California, company, Fargo, investment, Irvine, mortgage, Network, Residential, Trust, USA, Wachovia, Wells | ||
| Posted in Investing, Real Estate, Strategies |
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