Ross to Buy American Home Loan Unit for $435 Million (Update1)

Wilbur L. John Ross Jr., World Health Organization helped
pioneer investment in bankrupt companies, offered to pay at least
$435 million for the service unit of measurement of American Home Mortgage
Investment Corp., 1 of at least 16 loaners in bankruptcy.

John Ross said today that he is forming AH Mortgage Acquisition
Co. Inc. to purchase the loan service unit of measurement as his first measure in a
broader pushing into the mortgage market. AH Mortgage must win a
court-sanctioned auction bridge next calendar month for the unit, which collects
loan payments and manages escrow business relationships for about $57 billion
in mortgages.

''We feel that the mortgage industry is a very fundamental
industry to America,'' John Ross said. ''We felt the cardinal starting
place would be servicing.''

Ross, 69, have been purchasing and combining companies in the
textile, coal, steel and auto-parts industries. Last twelvemonth he
received $685 million from Emma Goldman Sachs Group Inc. to assist him
fund bigger buyouts of bankrupt companies.

''It's A large business, it's not going to travel away,'' Ross
said of the place loan industry. ''We just believe it was
implemented badly.''

Helium said he is now positioned to acquire into ''all aspects'' of
the mortgage industry, and that he expects other purchases.

''For the moment, we can't do new loans because the short-
term marketplace just died,'' John Ross said. It may take ''as long as
another year, but you never know.''

The lawsuit is In rhenium American Home Mortgage Holdings Inc., 07-
11047, U.S. Bankruptcy Court, District of Delaware (Wilmington).

To reach the newsman on this story:
Steven Church in Wilmington, Delaware,
at .