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Would-be American Home Mortgage borrowers scramble for new loans

On Monday afternoon, Coach Realtors agent Herta Kapp arrived at the Melville office of American Home Mortgage to close a deal on her client's Garden City house but was soon told a "computer glitch" was preventing loan checks from being issued.

Three hours later, with no money wired into the seller's account, everyone left, knowing the company was in financial trouble. Worse yet, the buyer...

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