In a statement, American Home Mortgage said it would shrink its workforce to 750 from 7,000 today because there is "no realistic alternative."
The Fort Wayne office will close, according to The Journal Gazette, quoting employees who were told yesterday in an e-mail to take personal belongings home.
The jobs are what remained after American Home Mortgage in January 2006 bought Waterfield Financial Corp., a mortgage originator in Fort Wayne, and quickly eliminated hundreds of jobs.
In its statement yesterday, American Home Mortgage said the company will take no more applications, but stopped short of discussing whether it would seek bankruptcy protection.
In the Indianapolis area, the company operates offices in Carmel, Greenwood and Plainfield.
Several real estate brokerages contacted by IBJ earlier this week said they were having trouble obtaining loans through American Home Mortgage, and were looking to other sources in the event the applications were rejected.
However, Indianapolis-area real estate experts said American Home Mortgage's problems would not be devastating because a plethora of options have become available through the Internet.