When it could no longer pay the $45,000-a-month rent for warehouse space, bankrupt mortgage lender American Home Mortgage Investment Corp (AHM) planned to destroy 490,000 loan records. The firm's chief compliance officer said the planned destruction would affect only paper loan files that have been fully imaged and any records related to consumer concerns or loan fraud would be available on its servers. According to media sources, AHM began imaging its mortgage loan files in 2005. According to court papers, the company has about 490,000 files stored as images on servers. However, amid the criticism from both homeowners and other lenders and financial institutions, AHM itself reconsidered, offering to hand over hard-copy documents to all qualified requesters for a small fee.
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