American Home Mortgage Clarifies Certain Information Regarding its Servicing Operations.

Freddie Mac and Ginnie Mae Issues Resolved;

Property Tax Checks Mistakenly Dishonored by Outside Financial Institution Will be Honored

MELVILLE, N.Y. -- American Home Mortgage Investment Corp. (OTC:AHMIQ) ("American Home") announced today that it has resolved the issues surrounding the Freddie Mac and Ginnie Mae owned loans.

American Home currently services more than 220,000 loans, of which approximately 4,600 are serviced for Freddie Mac and Ginnie Mae. Immediately prior to American Home's bankruptcy, both Freddie Mac and Ginnie Mae took direct control of the homeowner escrow accounts where the monies were deposited by American Home to pay taxes and insurance. Consequently, American Home had been unable to make payments that were due after August 24. American Home is pleased that it has now reached agreements with both Freddie Mac and Ginnie Mae regarding these matters.

* Both Freddie Mac and Ginnie Mae have made available the funds in the homeowner escrow accounts, and American Home has paid on the behalf of homeowners all tax and insurance remittances scheduled to be made between August 24 and today

* Homeowners will not be liable for any penalties or interest that may have been incurred due to late payment of tax and insurance

* In addition, arrangements have been made so that homeowner escrow funds will be available in the normal course to pay all taxes and insurance due in the future.

As part of its agreements with Freddie Mac and Ginnie Mae, American Home expects to realize value from its servicing rights related to Freddie Mac and Ginnie Mae loans for the benefit of its estate. In the case of Freddie Mac, American Home has agreed to temporarily transfer servicing to Bank of America, and Freddie Mac has agreed to allow American Home to sell the servicing rights to a permanent buyer. In the case of Ginnie Mae, American Home has been granted a limited period of time to sell the servicing rights associated with these loans. American Home believes these consensual resolutions are fair and should prevent any further disruptions to administration of the homeowner's escrow accounts.

American Home further noted that this matter concerned only Freddie Mac and Ginnie Mae; no other mortgage-backed securities portfolios were affected. For the balance of its approximately $60 billion servicing portfolio, American Home continues to submit tax and insurance payments on a timely basis.

Separately, American Home announced it had resolved a situation concerning a limited number of checks that were dishonored due to bank error. In early August, due to confusion on the part of an outside financial institution regarding accounts affected by the American Home bankruptcy, approximately 500 property tax checks were mistakenly dishonored. This misunderstanding has been corrected.

* American Home has actively worked to replace any dishonored checks to date and stands ready to do continue to do so.

* Tax authorities that may have received dishonored checks may contact [phone] to pursue replacement.

American Home regrets any inconvenience or anxiety caused to homeowners as a result of either of these situations. The Company's objective is to continue to provide high quality mortgage servicing to homeowners.

This news release contains "forward-looking statements" that are based upon expectations, estimates, forecasts, projections and assumptions. Any statement in this news release that is not a statement of historical fact, including, but not limited to, earnings guidance and forecasts, projections of financial results, expected future financial position, or business strategy, and any other statements of plans, expectations, objectives, estimates and beliefs, is a forward-looking statement. Words such as "look forward," "will," "anticipate," "may," "expect," "plan," "believe," "intend," "opportunity," "potential," and similar words, or the negatives of those words, are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that are difficult to predict, and are not guarantees of future performance. As a result, actual future events may differ materially from any future results, performance or achievements expressed in or implied by this news release. Specific factors that might cause such a difference include, but are not limited to: American Home's limited operating history with respect to its portfolio strategy; the potential fluctuations in American Home's financial results; American Home's potential need for additional capital; the direction of interest rates and their subsequent effect on the business of American Home and its subsidiaries; risks associated with the use of leverage; changes in federal and state tax laws affecting REITs; federal and state regulation of mortgage banking; and those risks and uncertainties discussed in filings made by American Home with the Securities and Exchange Commission. Such forward-looking statements are inherently uncertain, and stockholders must recognize that actual results may differ from expectations. American Home does not assume any responsibility, and expressly disclaims any responsibility, to issue updates to any forward-looking statements discussed in this news release, whether as a result of new information, future events or otherwise.