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# Another Mortgage Lender Files for Bankruptcy, Providing Hope for Creditors

## Introduction

In recent court records, it has been revealed that yet another mortgage lender is facing financial difficulties and has filed for bankruptcy. The filing suggests that funds will be made available for the lender’s unsecured creditors. This article will discuss the situation and how AI legalese decoder can assist in navigating this complex legal landscape.

## AmeriFirst Financial’s Bankruptcy Filing

Mesa, Arizona-based AmeriFirst Financial has sought Chapter 11 protection, according to its filing in the U.S. Bankruptcy Court for the District of Delaware. While the firm reportedly stopped funding loans in December, it briefly resumed originations in June, as per media reports and social media posts. The company and its chief restructuring officer have not responded to comment requests, adding to the uncertainty surrounding the situation.

Furthermore, CEO Eric Bowlby has been removed from his position, with Phoenix 1040 LLC becoming a shareholder of the holding company. Phoenix 1040 is listed as AmeriFirst’s sole equity holder in the bankruptcy filings, and it was incorporated in Delaware in late June. These recent developments have further complicated the lender’s predicament.

## The Scope of AmeriFirst’s Bankruptcy Case

AmeriFirst, unrelated to former Michigan lender AmeriFirst Home Mortgage, has around 100-199 creditors, with estimated assets and liabilities in the range of $50 million to $100 million each, according to the filing. Noteworthy creditors in the list include major banks, mortgage vendors, and attorneys. Reverence Capital Partners, a private equity firm based in New York, is owed $23.8 million through two unsecured claims, while Wells Fargo has an outstanding amount of $1 million. Additionally, Lakeview Loan Servicing is listed with an unsecured claim of $431,045.

## AmeriFirst’s Mortgage Volume and Loan Offerings

In the previous year, AmeriFirst successfully originated $2.4 billion in mortgage volume, as per S&P data. However, the figures have declined, with AmeriFirst originating $110 million in volume across 215 loans until April of this year. The lender provided conventional, government-sponsored, and reverse mortgages, employing 109 sponsored mortgage loan officers, according to Nationwide Multistate Licensing System records. These figures shed light on the lender’s significant presence and operations within the mortgage industry.

## The Hearing and The Industry Landscape

The bankruptcy case is set for a hearing on Tuesday in the federal bankruptcy court in Wilmington, Delaware. AmeriFirst is not the only lender facing financial turmoil, as it is the third lender to file for Chapter 11 protection in the past 14 months. An additional lender, Sprout Mortgage, has also been targeted with an involuntary petition. Federal judges have intervened, ordering bankruptcy financing for First Guaranty Mortgage Corp. and Reverse Mortgage Funding, as detailed in court documents and news reports.

## Leveraging AI legalese decoder

In such complex bankruptcy cases, AI legalese decoder can be an invaluable tool for legal professionals, investors, and other stakeholders. This AI-powered solution can efficiently analyze legal documents, court filings, and contracts, providing a comprehensive breakdown of complex legalese. By utilizing AI legalese decoder, users can quickly gain insights into the bankruptcy case, identify key creditors, assess potential recovery for unsecured claims, and make informed decisions. With its ability to process vast amounts of legal information accurately, AI legalese decoder saves time and enhances the efficiency of legal workflows.

In conclusion, the bankruptcy filing of AmeriFirst Financial has significant implications for its unsecured creditors. With its AI-powered capabilities, AI legalese decoder can be an effective tool in comprehending the intricate legal details, improving decision-making, and ultimately assisting stakeholders in navigating this challenging situation.

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