AmeriFirst Files Chapter 11 Bankruptcy | National Mortgage Professional

AmeriFirst Home Mortgage filed Chapter 11 bankruptcy in the US Bankruptcy Court in the District of Delaware with as much as $100 million in assets and liabilities. Data from Modex reveals the lender funded $2.5 billion in loan originations in 2022 after an increase in interest rates. The mid-size Arizona-based mortgage lender has several branches throughout the country and has been in business for over two decades. CEO Eric Bowlby has continued to recruit loan officers despite the financial hardships. Moreover, Bowlby coordinated with American Pacific Mortgage to hire 400 former AmeriFirst employees. However, sources state that 20 have since returned to AmeriFirst. A former employee voiced that they are uncertain whether American Pacific Mortgage was prepared to have some employees return to work with Bowlby at AmeriFirst. Moreover, the employee mentioned that Bowlby has continued to recruit loan officers over the past month and a half. AmeriFirst Home Mortgage offers FHA, VA, and conventional loan products. A source speculated that Bowlby could be filing bankruptcy as a formality to restructure debt before rebranding. 

Essentially, the lender kept its business purpose lending (BPL) with four products, including debt-service coverage ratio (DSCR) loans, bridge financing, investor construction loans and residential transition loans (RTLs). The firm stated that its BPL business originates about $30 million in volume monthly.

Source: AmeriFirst Files Chapter 11 Bankruptcy