SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                    FORM 10-Q

              [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934.

                  FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2003

                 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR
                  15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

            FOR THE TRANSITION PERIOD FROM ___________ TO __________

                        COMMISSION FILE NUMBER 000-27081

                      AMERICAN HOME MORTGAGE HOLDINGS, INC.

             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


          DELAWARE                                       13-4066303
-------------------------------             ------------------------------------
(STATE OR OTHER JURISDICTION OF             (I.R.S. EMPLOYER IDENTIFICATION NO.)
 INCORPORATION OR ORGANIZATION)


                    520 BROADHOLLOW ROAD, MELVILLE, NY 11747
               ---------------------------------------------------
               (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)

                                 (516) 949-3900
               ---------------------------------------------------
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)

           SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

          TITLE OF EACH CLASS                      NAME OF EACH EXCHANGE

          Common Stock, $0.01 par value            NASDAQ National Market


        SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE

            Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ].

            Indicate by check mark whether the registrant is an accelerated
filer (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ].

            As of March 31, 2003, 16,774,913 shares of the registrant's Common
Stock, $0.01 par value, were outstanding.

<PAGE>

               AMERICAN HOME MORTGAGE HOLDINGS, INC. AND SUBSIDIARIES
                                       INDEX


PART I-FINANCIAL INFORMATION

Item 1.  Interim Condensed Consolidated Financial Statements

         Interim Condensed Consolidated Balance Sheets (unaudited)-
            March 31, 2003 and December 31, 2002 ............................. 1

         Interim Condensed Consolidated Statements of Income (unaudited)-
            Three months ended March 31, 2003 and 2002 ....................... 2

         Interim Condensed Consolidated Statements of Cash Flows
            (unaudited) - Three months ended March 31, 2003 and 2002 ......... 3

         Notes to Interim Condensed Consolidated Financial Statements
            (unaudited) ...................................................... 4

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations ...............................................11

Item 3.  Quantitative and Qualitative Disclosures about Market Risk ..........20

Item 4.  Controls and Procedures .............................................21

PART II-OTHER INFORMATION

Item 2.  Changes in Securities and Use of Proceeds ...........................22

Item 6.  Exhibits and Reports on Form 8-K ....................................22

SIGNATURES

CERTIFICATIONS

<PAGE>

                                     ITEM 1.

               INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

                      AMERICAN HOME MORTGAGE HOLDINGS, INC.
                  INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                     MARCH 31,    DECEMBER 31,
                                                                        2003          2002
                                                                     ----------   ------------
<S>                                                                  <C>          <C>
ASSETS
Cash and cash equivalents                                            $   31,019   $     24,416
Accounts receivable and servicing advances                               69,534         72,563
Mortgage loans held for sale, net                                     1,011,040        811,188
Mortgage loans held for investment, net                                   1,399          1,714
Mortgage servicing rights, net                                           96,373        109,023
Premises and equipment, net                                              14,179         13,001
Goodwill                                                                 51,148         50,932
Derivative assets                                                        38,018         30,071
Real estate owned                                                           493            629
Other assets                                                              7,046          5,513
                                                                     ----------   ------------
TOTAL ASSETS                                                         $1,320,249   $  1,119,050
                                                                     ==========   ============

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES:
      Warehouse lines of credit                                      $  901,741   $    728,466
      Notes payable                                                      65,802         68,261
      Drafts payable                                                     50,343         42,599
      Accrued expenses and other liabilities                             69,830         64,945
      Derivative liabilities                                              1,107          7,204
      Income taxes payable                                               50,935         42,955
                                                                     ----------   ------------
                Total liabilities                                     1,139,758        954,430
                                                                     ----------   ------------

COMMITMENTS AND CONTINGENCIES                                                --             --

MINORITY INTEREST                                                           451            524

STOCKHOLDERS' EQUITY:
      Preferred stock, $1.00 per share par value, 1,000,000 shares
           authorized, none issued and outstanding                           --             --
      Common stock, $.01 per share par value, 19,000,000
           shares authorized, 16,774,913 and 16,717,459 shares
           issued and outstanding, respectively                             168            167
      Additional paid-in capital                                         96,252         95,785
      Retained earnings                                                  83,620         68,144
                                                                     ----------   ------------
                Total stockholders' equity                              180,040        164,096
                                                                     ----------   ------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                           $1,320,249   $  1,119,050
                                                                     ==========   ============
</TABLE>

See Notes to Interim Condensed Consolidated Financial Statements.


                                      -1-
<PAGE>

                       AMERICAN HOME MORTGAGE HOLDINGS, INC.
                INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                   (Dollars in thousands, except per share data)
                                    (Unaudited)
--------------------------------------------------------------------------------

                                                      FOR THE THREE MONTHS ENDED
                                                               MARCH 31,
                                                          2003           2002
                                                      -----------    -----------
REVENUES:
      Gain on sale of mortgage loans                  $    88,211    $    30,633
      Interest income, net                                  9,800          2,997

      Loan servicing fees                                  12,097             --
      Amortization and impairment                         (18,482)            --
                                                      -----------    -----------
          Net loan servicing fees                          (6,385)            --

      Other                                                 2,928            312
                                                      -----------    -----------
          Total revenues                                   94,554         33,942
                                                      -----------    -----------
EXPENSES:
      Salaries, commissions and benefits, net              44,647         15,002
      Occupancy and equipment                               5,623          2,381
      Data processing and communications                    3,079          1,434
      Office supplies and expenses                          3,023          1,136
      Marketing and promotion                               2,799          1,576
      Travel and entertainment                              1,987            655
      Professional fees                                     1,841            535
      Other                                                 3,433            688
                                                      -----------    -----------
          Total expenses                                   66,432         23,407
                                                      -----------    -----------
INCOME BEFORE INCOME TAXES AND MINORITY
      INTEREST IN INCOME OF CONSOLIDATED
      JOINT VENTURES                                       28,122         10,535
INCOME TAXES                                               11,577          3,719
                                                      -----------    -----------
NET INCOME BEFORE MINORITY INTEREST IN
      INCOME OF CONSOLIDATED JOINT VENTURES                16,545          6,816
MINORITY INTEREST IN INCOME OF CONSOLIDATED
      JOINT VENTURES                                          232            112
                                                      -----------    -----------
NET INCOME                                            $    16,313    $     6,704
                                                      ===========    ===========

Per share data:
      Basic                                           $      0.97    $      0.56
      Diluted                                         $      0.96    $      0.54

Weighted average number of shares - basic              16,750,960     12,066,669
Weighted average number of shares - diluted            17,015,681     12,529,918

See Notes to Interim Condensed Consolidated Financial Statements.


                                      -2-
<PAGE>

                       AMERICAN HOME MORTGAGE HOLDINGS, INC.
              INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (Dollars in thousands)
                                    (Unaudited)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                       FOR THE THREE MONTHS ENDED
                                                                                 MARCH 31,
                                                                           2003            2002
                                                                       ------------    ------------
<S>                                                                    <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES :
     Net income                                                        $     16,313    $      6,704
     Adjustments to reconcile net income to net cash (used in)
         provided by operating activities:
            Depreciation and amortization                                     1,169             587
            Amortization and impairment of mortgage servicing rights         18,482              --
            Origination of mortgage loans held for sale                  (1,969,022)     (1,748,971)
            Proceeds on sale of mortgage loans                            1,769,170       1,983,214
            Increase (decrease) in income taxes payable                       7,980         (10,583)
            Other                                                               123              --
            (Increase) decrease in operating assets:
                Accounts receivable                                           3,029          (3,289)
                Derivative assets                                            (7,947)         (6,540)
                Other assets                                                 (1,533)           (199)
            Increase (decrease) in operating liabilities:
                Minority interest                                               (73)             75
                Accrued expenses and other liabilities                        4,894          (5,393)
                Derivative liabilities                                       (6,097)             --
                                                                       ------------    ------------
                Net cash (used in) provided by operating activities        (163,512)        215,605
                                                                       ------------    ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Sale (purchase) of real estate owned, net                                  136            (222)
     Purchases of premises and equipment, net                                (2,347)         (1,446)
     Earnouts related to previous acquisitions                                  (82)         (1,485)
     Capitalization of mortgage servicing rights                             (5,832)         (1,111)
     Net sales of loans held for investment                                     315             105
                                                                       ------------    ------------
                Net cash used in investing activities                        (7,810)         (4,159)
                                                                       ------------    ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Increase (decrease) in warehouse lines of credit                       173,275        (196,892)
     Increase (decrease) in drafts payable                                    7,744         (29,534)
     Proceeds from issuance of capital stock                                    202           1,061
     Dividends paid                                                            (837)           (360)
     Decrease in notes payable                                               (2,459)           (199)
                                                                       ------------    ------------
                Net cash provided by (used in) financing activities         177,925        (225,924)
                                                                       ------------    ------------

NET INCREASE (DECREASE) IN CASH                                               6,603         (14,478)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD                               24,416          26,393
                                                                       ------------    ------------

CASH AND CASH EQUIVALENTS, END OF PERIOD                               $     31,019    $     11,915
                                                                       ============    ============

SUPPLEMENTAL DISCLOSURE--CASH PAID FOR:
     Interest                                                          $      8,527    $      2,707
     Taxes                                                                    5,256          14,269
</TABLE>

 See Notes to Interim Condensed Consolidated Financial Statements.


                                      -3-
<PAGE>

                      AMERICAN HOME MORTGAGE HOLDINGS, INC.
          NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                  (DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
                                   (UNAUDITED)

NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited interim consolidated financial statements of American
Home Mortgage Holdings, Inc. ("American Home") and its subsidiaries, American
Home Mortgage Corp. ("AHM") and Columbia National, Incorporated ("Columbia")
(collectively, the "Company"), reflect all adjustments which, in the opinion of
management, are necessary for a fair presentation of the results of the interim
periods presented. All such adjustments are of a normal recurring nature. All
intercompany accounts and transactions have been eliminated. Operating results
for the three months ended March 31, 2003 are not necessarily indicative of the
results that may be expected for the full year ended December 31, 2003. Certain
prior year balances have been reclassified to conform with current year
presentation.

The unaudited interim condensed consolidated financial statements should be read
in conjunction with the Company's audited consolidated financial statements and
notes thereto for the year ended December 31, 2002, included in the Company's
Annual Report on Form 10-K for the year then ended.

NOTE 2 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income available to common
stockholders by the weighted-average shares of common stock outstanding for the
period. Diluted earnings per share is computed by dividing net income available
to common stockholders by the weighted-average number of shares of common stock
outstanding, assuming all potential dilutive common shares were issued.

<TABLE>
<CAPTION>
                                                      THREE MONTHS ENDED MARCH 31,
                                                          2003             2002
                                                      -----------      -----------
<S>                                                   <C>              <C>
Numerator for basic earnings per share - Net income   $    16,313      $     6,704
                                                      ===========      ===========

Denominator:
  Denominator for basic earnings per share
  Weighted average number of common shares
    outstanding during the period                      16,750,960       12,066,669

Net effect of dilutive stock options                      264,721          463,249
                                                      -----------      -----------

Denominator for diluted earnings per share             17,015,681       12,529,918
                                                      ===========      ===========

Net income per share:

  Basic                                               $      0.97      $      0.56
                                                      ===========      ===========

  Diluted                                             $      0.96      $      0.54
                                                      ===========      ===========
</TABLE>

An aggregate of approximately 398,000 and 45,000 employee stock options and
restricted shares for the three months ended March 31, 2003 and 2002,
respectively, were not included in the diluted earnings per share calculation
because their effect would have been anti-dilutive.


                                      -4-
<PAGE>

NOTE 3 - DERIVATIVE INVESTMENTS AND HEDGING ACTIVITIES

The following table summarizes derivative assets and liabilities at March 31,
2003 and December 31, 2002:

                                                      MARCH 31,     DECEMBER 31,
                                                        2003           2002
                                                     ----------    ------------
Derivative Assets
Interest rate lock commitments                       $   37,453    $     29,346
Options on treasury future contracts                        554             725
Forward delivery contracts - Loan commitments                11              --
                                                     ----------    ------------
     Total Derivative Assets                         $   38,018    $     30,071
                                                     ==========    ============

DERIVATIVE LIABILITIES
Forward delivery contracts - Loan commitments        $   (1,107)   $     (7,204)
Forward delivery contracts - Loans held for sale(1)        (366)         (1,866)
                                                     ----------    ------------
     Total Derivative Liabilities                    $   (1,473)   $     (9,070)
                                                     ==========    ============

(1) This amount is included in loans held for sale.

At March 31, 2003, the notional amount of forward delivery commitments amounted
to approximately $2.6 billion and the notional amount of options on treasury
futures contracts amounted to $500 million. These contracts have a high
correlation to the price movement of the loans being hedged.

NOTE 4 - MORTGAGE SERVICING RIGHTS

Mortgage servicing rights activity for the three months ended March 31, 2003 was
as follows:

                                               MORTGAGE
                                              SERVICING   IMPAIRMENT
                                                RIGHTS     ALLOWANCE    TOTAL
                                              ---------   ----------   --------
Balance, December 31, 2002                    $ 119,225   $  (10,202)  $109,023

Additions                                         5,832           --      5,832
Amortization                                    (12,769)          --    (12,769)
Impairment provision                                 --       (5,713)    (5,713)
                                              ---------   ----------   --------

Balance, March 31, 2003                       $ 112,288   $  (15,915)  $ 96,373
                                              =========   ==========   ========

Aggregate Amortization Expense
   Three months ended March 31, 2003                                   $ 12,769

Estimated Amortization Expense
   Twelve months ended March 31, 2004                                    44,675
   Twelve months ended March 31, 2005                                    21,413
   Twelve months ended March 31, 2006                                    12,447
   Twelve months ended March 31, 2007                                     8,269
   Twelve months ended March 31, 2008                                     5,884


                                      -5-
<PAGE>

NOTE 5 - GOODWILL

The changes in the carrying amount of goodwill for the three months ended
March 31, 2003 are as follows:

Balance as of December 31, 2002                 $50,932
Earnouts from previous acquisitions                 216
                                                -------
Balance as of March 31, 2003                    $51,148
                                                =======

NOTE 6- ACQUISITIONS

Effective June 13, 2002, the Company acquired Columbia National, Incorporated
("Columbia"), a Maryland corporation. In consideration of the acquisition, the
shareholders of Columbia received $37 million in cash. Prior to the acquisition,
Columbia was an independent mortgage lender based in Columbia, Maryland.
Columbia now operates as a wholly-owned subsidiary of American Home. Columbia
engages in the origination, sale and servicing of residential first mortgage
loans.

The following table summarizes the required disclosures of the pro forma
combined entity, as if the merger occurred at the beginning of the year for the
three months ended March 31, 2002:

Revenue                                               $53,260
Income before income taxes and minority interest      $11,509
Net income                                            $ 7,288
Earnings per share - basic                              $0.60
Earnings per share - diluted                            $0.58

During February 2003, the Company purchased the retail mortgage lending branches
of Principal Residential Mortgage, Inc. (the "Principal Branches"). The Company
paid $2.4 million in cash for the current application pipeline and the assets of
the Principal Branches consisting of 75 branches in 21 states.

NOTE 7- STOCK OPTIONS

In 1999, the Company established the 1999 Omnibus Stock Option Plan (the
"Plan"). Pursuant to the Plan, employees, officers and directors are offered the
opportunity to acquire the Company's common stock through the grant of options
and the award of restricted stock under the Plan. The total number of shares
that may be optioned or awarded under the Plan is 2,250,000 shares of common
stock. The Plan provides for the granting of options at the fair market value at
the date of grant. The options issued generally vest 50% on the two-year
anniversary of the grant date and 50% on the three-year anniversary of the grant
date and expire ten years from the grant date.

The Company has elected to follow Accounting Principles Board Opinion ("APB")
No. 25, "Accounting for Stock Issued to Employees," and related interpretations
in accounting for its employee stock options and awards. Under APB No. 25, no
compensation expense is recognized when the exercise prices of the options
equals the fair value (market price) of the underlying stock on the date of
grant. The Plan is a compensatory stock option plan. There was no intrinsic
value of the options granted, as the exercise price was equal to the quoted
market price at the grant date. No compensation cost has been recognized for the
three months ended March 31, 2003 and 2002.

Under the Plan, the Company awarded 68,210 and 50,001 shares of restricted stock
during 2002 and 1999, respectively. During the three months ended March 31,
2003, the Company recognized compensation expense of $123 thousand relating to
restricted shares. At March 31, 2003, 50,001 shares are vested. In general,
unvested restricted stock is forfeited upon the recipient's termination of
employment.


                                      -6-
<PAGE>

Statement of Financial Accounting Standard (SFAS) No. 123, "Accounting for
Stock-Based Compensation" ("SFAS No. 123"), requires the Company to disclose pro
forma information regarding option grants made to its employees. SFAS No. 123
specifies certain valuation techniques that produce estimated compensation
charges for purposes of valuing stock option grants. These amounts have not been
included in the Company's interim condensed consolidated statements of income,
in accordance with APB No. 25. If these amounts were included, the Company's pro
forma net income and the related basic and diluted earnings per share would have
been as follows:

                                                      THREE MONTHS ENDED
                                                           MARCH 31,

                                                      2003         2002
                                                    --------     --------
Net income, as reported                             $ 16,313     $  6,704

Less: Total stock-based employee compensation
expense determined under fair value based method
for all awards, net of related tax effects               134          142
                                                    --------     --------
Pro forma net income                                $ 16,179     $  6,562
                                                    ========     ========

Earnings per share:
    Basic - as reported                             $   0.97     $   0.56
    Basic - pro forma                               $   0.97     $   0.54

    Diluted - as reported                           $   0.96     $   0.54
    Diluted - pro forma                             $   0.95     $   0.52

There were no options granted during the three months ended March 31, 2003. The
weighted-average fair value of options granted during the three months ended
March 31, 2002 was $4.33. The fair value of the options granted was estimated
using the Black-Scholes option-pricing model with the following weighted-average
assumptions used for the grants:

                                                  2002
Dividend yield                                     3.0%
Expected volatility                               54.0%
Risk-free interest rate                            5.0%
Expected life                                  3 years


                                      -7-
<PAGE>

NOTE 8 - SEGMENTS

The Company has two segments, the Loan Production Segment and the Loan Servicing
Segment. The Loan Production Segment originates mortgage loans through the
Company's retail and Internet branches and loans sourced through mortgage
brokers (wholesale channel). The Loan Servicing Segment includes investments in
mortgage servicing rights as well as servicing operations primarily for other
financial institutions. The Loan Servicing Segment was immaterial prior to the
acquisition of Columbia in June 2002 and thus the Loan Servicing Segment results
are included in the Loan Production Segment results in prior periods.

<TABLE>
<CAPTION>
                                                         THREE MONTHS ENDED MARCH 31,
                                                           2003               2002
                                                      --------------   -----------------
<S>                                                   <C>              <C>
LOAN PRODUCTION SEGMENT

Revenues:
  Gain on sale of mortgage loans                      $       88,211   $          30,633
  Interest income - net                                       11,555               2,997
  Other                                                        2,928                 312
                                                      --------------   -----------------

    Total revenues                                           102,694              33,942

Expenses:
  Salaries, commissions and benefits - net                    43,841              15,002
  Occupancy and equipment                                      5,492               2,381
  Data processing and communications                           3,052               1,434
  Office supplies and expenses                                 2,664               1,136
  Marketing and promotion                                      2,797               1,576
  Travel and entertainment                                     1,986                 655
  Professional fees                                            1,709                 535
  Other                                                        3,027                 688
                                                      --------------   -----------------

Operating expenses                                            64,568              23,407
                                                      --------------   -----------------

Net income before income taxes and minority
  interest in income of consolidated joint ventures           38,126              10,535

Income taxes                                                  15,584               3,719
Minority interest in income of consolidated
   joint ventures                                                232                 112
                                                      --------------   -----------------

Net income                                            $       22,310   $           6,704
                                                      ==============   =================

                                                      MARCH 31, 2003   DECEMBER 31, 2002
                                                      --------------   -----------------
Segment assets                                        $    1,174,587   $         997,826
                                                      ==============   =================
</TABLE>


                                      -8-
<PAGE>

                                              THREE MONTHS ENDED MARCH 31,
                                                2003               2002
                                           --------------    -----------------
LOAN SERVICING SEGMENT

Revenues:
  Servicing revenue                        $        8,481    $              --
  Gain on Ginnie Mae early buy-out sales            3,616                   --
  Amortization and impairment                     (18,482)                  --
                                           --------------    -----------------
      Net loan servicing fees (loss)               (6,385)                  --

  Interest expense - net                           (1,755)                  --
                                           --------------    -----------------

    Total revenues                                 (8,140)                  --

Expenses:
  Salaries and benefits - net                         806                   --
  Occupancy and equipment                             131                   --
  Data processing and communications                   27                   --
  Office supplies and expenses                        359                   --
  Marketing and promotion                               2                   --
  Travel and entertainment                              1                   --
  Professional fees                                   132                   --
  Other                                               406                   --
                                           --------------    -----------------

Operating expenses                                  1,864                   --
                                           --------------    -----------------

Net loss before income tax benefit                (10,004)                  --

Income tax benefit                                 (4,007)                  --
                                           --------------    -----------------

Net loss                                   $       (5,997)   $              --
                                           ==============    =================

                                           MARCH 31, 2003    DECEMBER 31, 2002
                                           --------------    -----------------
Segment assets                             $      145,662    $         121,224
                                           ==============    =================

NOTE 9 - RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board issued FASB Interpretation (FIN) No.
45, "Guarantor's Accounting and Disclosure Requirements for Guarantees,
Including Indirect Guarantees of Indebtedness of Others" ("FIN No. 45"), which
expands on the accounting guidance of SFAS No. 5, "Accounting for
Contingencies," SFAS No. 57, "Related Party Disclosures," and SFAS No. 107,
"Disclosures about Fair Value of Financial Instruments." FIN No. 45 elaborates
on the disclosures to be made by a guarantor about its obligations under certain
guarantees issued. FIN No. 45 also clarifies that a guarantor is required to
recognize, at the inception of a guarantee, a liability for the fair value of
the obligation undertaken in issuing the guarantee. The implementation of FIN
No. 45 did not have a material impact to the Company's consolidated financial
statements.

The Financial Accounting Standards Board issued FIN No. 46, "Consolidation of
Variable Interest Entities, a Clarification of Accounting Research Bulletin
(ARB) No. 51, Consolidated Financial Statements" ("FIN No. 46"), which addresses
consolidation by business enterprises of variable interest entities ("VIEs")
when specific characteristics are met. FIN No. 46 clarifies the application of
ARB No. 51 to certain entities in which equity investors do not have the
characteristics of a controlling financial interest or do not have sufficient
equity at risk for the entity to finance its activities without additional
subordinated financial support from other parties. The


                                      -9-
<PAGE>

provisions of FIN No. 46 are effective February 1, 2003 for new and modified
VIEs and July 1, 2003 for other entities. Management believes that the
implementation of FIN No. 46 will not have a material effect on the Company.

On April 30, 2003, the Financial Accounting Standards Board issued SFAS No. 149,
"Amendment of Statement 133 on Derivative Instruments and Hedging Activities"
("SFAS No. 149"). SFAS No. 149 amends and clarifies accounting for derivative
instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities under SFAS No. 133. SFAS No. 149 is
effective for contracts entered into or modified after June 30, 2003, and for
hedging relationships designated after June 30, 2003. The Company is currently
in the process of evaluating the impact SFAS No. 149 may have on its
consolidated financial statements.


                                      -10-
<PAGE>

                                     ITEM 2.

           MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                            AND RESULTS OF OPERATIONS

GENERAL

The Company is an independent retail mortgage banking company primarily engaged
in the business of originating, selling and servicing residential mortgage
loans. The Company offers a broad array of residential mortgage products
targeted primarily to high-credit-quality borrowers. As of March 31, 2003, the
Company made loans from 206 community loan offices across the country as well as
over the Internet and through mortgage brokers. The Company operates primarily
as a mortgage banker, underwriting, funding and selling its loan products.

The Company has two segments, the Loan Production Segment and the Loan Servicing
Segment. The Loan Production Segment originates loans through the Company's
retail and Internet branches and loans sourced through mortgage brokers (the
wholesale channel). The Loan Servicing Segment includes investments in mortgage
servicing rights as well as servicing operations primarily for other financial
institutions. The Loan Servicing Segment was immaterial prior to the acquisition
of Columbia in June 2002 and thus the Loan Servicing Segment results are
included in the Loan Production Segment results in prior years.

Net income for the three months ended March 31, 2003 was $16.3 million or $0.96
per share on a diluted basis, compared to $6.7 million or $0.54 per share for
the same period in 2002.

Loan originations increased 126% in the three months ended March 31, 2003,
totaling $4.3 billion (including $1.0 billion and $184 million attributable to
Columbia and the Principal Branches, respectively) compared to $1.9 billion in
the same period in 2002.

CRITICAL ACCOUNTING ESTIMATES

MORTGAGE LOANS HELD FOR SALE - Mortgage loans held for sale represent mortgage
loans originated and held pending sale to interim and permanent investors. The
hedged mortgage loans are carried at fair value as determined by outstanding
commitments from investors or current investor yield requirements calculated on
the aggregate loan basis, less an estimate of the costs to complete the loan,
less the deferral of fees and points received, plus the deferral of certain
direct loan origination costs. The unhedged mortgage loans are carried at the
lower of cost or fair value as determined by outstanding commitments from
investors or current investor yield requirements calculated on the aggregate
loan basis, less the deferral of fees and points received, plus the deferral of
certain direct loan origination costs. Gains or losses on such sales are
recognized at the time legal title transfers to the investor and are based upon
the difference between the sales proceeds from the final investor and the
adjusted book value of the loan sold.

MORTGAGE SERVICING RIGHTS - When the Company acquires servicing assets through
either purchase or origination of loans and sells or securitizes those loans
with servicing assets retained, the total cost of the loans is allocated to the
servicing assets and the loans (without the servicing assets) based on their
relative fair values. The amount attributable to the servicing assets is
capitalized as mortgage servicing rights ("MSRs") on the consolidated balance
sheets. The MSRs are amortized to expense in proportion to and over the period
of estimated net servicing income.

The MSRs are assessed for impairment based on the fair value of those assets.
The Company estimates fair value of the servicing assets by obtaining market
information from one of the primary mortgage servicing rights brokers. When the
book value of capitalized servicing assets exceeds their fair value, impairment
is recognized through a valuation allowance. In determining impairment, the
mortgage servicing portfolio is stratified by the predominant risk
characteristic of the underlying mortgage loans. The Company has determined that
the predominant risk characteristic is the interest rate on the underlying loan.
The Company measures impairment for each stratum by comparing the estimated fair
value to the recorded book value. Temporary impairment is


                                      -11-
<PAGE>

recorded through a valuation allowance and amortization expense in the period of
occurrence. In addition, the Company periodically evaluates its mortgage
servicing rights for other than temporary impairment to determine if the
carrying value before the application of the valuation allowance is recoverable.
When the Company determines that a portion of the mortgage servicing rights is
not recoverable, the related mortgage servicing rights and the previously
established valuation allowance are correspondingly reduced to reflect other
than temporary impairment.

DERIVATIVE FINANCIAL INSTRUMENTS - The Company has developed risk management
programs and processes designed to manage market risk associated with normal
business activities.

Risk Management of the Mortgage Pipeline. The Company's mortgage-committed
pipeline includes interest rate lock commitments ("IRLCs") that have been
extended to borrowers who have applied for loan funding and meet certain defined
credit and underwriting criteria. Effective with the adoption of SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities," as amended, the
Company classifies and accounts for the IRLCs as free-standing derivatives.
Accordingly, IRLCs are recorded at fair value with changes in fair value
recorded to current earnings. The fair value of the IRLCs is determined by an
estimate of the ultimate gain on sale of the loans net of estimated net costs
remaining to originate the loan. The Company uses other derivative instruments,
including mortgage forward delivery contracts and treasury futures options, to
economically hedge the IRLCs, which are also classified and accounted for as
free-standing derivatives and thus are recorded at fair value with the changes
in fair value recorded to current earnings.

Risk Management of Mortgage Loans Held for Sale. The Company's risk management
objective for its mortgage loans held for sale is to protect earnings from an
unexpected charge due to a decline in value. The Company's strategy is to engage
in a risk management program involving the use of mortgage forward delivery
contracts designated as fair value hedging instruments to hedge 100% of its
agency-eligible conforming loans and most of its non-conforming loans held for
sale. At the inception of the hedge, the Company formally documents the
relationship between the forward delivery contracts and the mortgage inventory,
as well as its objective and strategy for undertaking the hedge transactions.
The notional amount of the forward delivery contracts, along with the underlying
rate and terms of the contracts, are equivalent to the unpaid principal amount
of the mortgage inventory being hedged; hence, the forward delivery contracts
effectively fix the forward sales price and thereby substantially eliminate
interest rate and price risk to the Company. The Company classifies and accounts
for these forward delivery contracts as fair value hedges. The derivatives are
carried at fair value with the changes in fair value recorded to current
earnings. When the hedges are deemed to be highly effective, the book value of
the hedged loans held for sale is adjusted for its change in fair value during
the hedge period.

Termination of Hedging Relationships. The Company employs a number of risk
management monitoring procedures to ensure that the designated hedging
relationships are demonstrating, and are expected to continue to demonstrate, a
high level of effectiveness. Hedge accounting is discontinued on a prospective
basis if it is determined that the hedging relationship is no longer highly
effective or expected to be highly effective in offsetting changes in fair value
of the hedged item. Additionally, the Company may elect to de-designate a hedge
relationship during an interim period and re-designate upon the rebalancing of a
hedge profile and the corresponding hedge relationship. When hedge accounting is
discontinued, the Company continues to carry the derivative instruments at fair
value with changes in their value recorded in earnings.

GOODWILL - Goodwill represents the excess purchase price over the fair value of
net assets stemming from business acquisitions, including identifiable
intangibles. The Company will test for impairment annually or more frequently if
events or circumstances indicate that an asset may be impaired. In accordance
with SFAS No. 142, "Goodwill and Other Intangible Assets," the Company tests for
impairment by comparing the fair value of goodwill, as determined by using a
discounted cash flow method, with its carrying value. Any excess of carrying
value over the fair value of the goodwill would be recognized as an impairment
loss in continuing operations. The discounted cash flow calculation includes a
forecast of the expected future loan originations and the related revenues and
expense. These cash flows are discounted using a rate that is estimated to be a
weighted average cost of capital for similar mortgage companies. The Company
further tests to ensure that the fair value of all its business units does not
exceed its total market capitalization.


                                      -12-
<PAGE>

RESULTS OF OPERATIONS

      THREE MONTHS ENDED MARCH 31, 2003 COMPARED TO THE THREE MONTHS ENDED
                                 MARCH 31, 2002

The following table sets forth, for the periods indicated, the Company's Loan
Production Segment's operating results, including percentage of total revenues.
Any trends illustrated in the following table are not necessarily indicative of
future results.

<TABLE>
<CAPTION>
LOAN PRODUCTION  SEGMENT                                         THREE MONTHS ENDED MARCH 31,
                                                                   2003               2002
                                                                    (DOLLARS IN MILLIONS)
                                                             ----------------------------------
<S>                                                          <C>        <C>     <C>        <C>
RESULTS OF OPERATIONS:
Gain on sales of mortgage loans ..........................   $ 88.2     85.9%   $ 30.6     90.3%
Interest income, net .....................................     11.6     11.2       3.0      8.8
Other ....................................................      2.9      2.9       0.3      0.9
                                                             ------             ------
     Total revenues ......................................    102.7    100.0      33.9    100.0
                                                             ------             ------

Salaries, commissions and benefits, net ..................     43.8     42.7      15.0     44.2
Occupancy and equipment ..................................      5.5      5.4       2.4      7.0
Data processing and communications .......................      3.1      3.0       1.4      4.2
Office supplies and expenses .............................      2.7      2.6       1.1      3.4
Marketing and promotion ..................................      2.8      2.7       1.6      4.7
Travel and entertainment .................................      2.0      1.9       0.7      1.9
Professional fees ........................................      1.7      1.7       0.5      1.6
Other ....................................................      3.0      2.9       0.7      2.0
                                                             ------             ------
     Total expenses ......................................     64.6     62.9      23.4     69.0
                                                             ------             ------

Income before income taxes and minority interest in
     income of in consolidated joint ventures ............     38.1     37.1      10.5     31.0
Income taxes .............................................     15.6     15.2       3.7     11.0
Minority interest in income of consolidated joint ventures      0.2      0.2       0.1      0.3
                                                             ------             ------
Net income ...............................................   $ 22.3     21.7%   $  6.7     19.7%
                                                             ======             ======
</TABLE>


                                      -13-
<PAGE>

The following table sets forth, for the periods indicated, the Company's Loan
Servicing Segment's operating results. Any trends illustrated in the following
table are not necessarily indicative of future results. The Loan Servicing
Segment was immaterial prior to the acquisition of Columbia in June of 2002 and
thus the Loan Servicing Segment results are included in the Loan Production
Segment results in prior periods.

LOAN SERVICING SEGMENT                                      THREE MONTHS ENDED
                                                                 MARCH 31,
                                                            2003           2002
                                                           (DOLLARS IN MILLIONS)
                                                           ---------------------
RESULTS OF OPERATIONS:
Loan servicing fees ....................................   $  8.5         $   --
Gain on Ginnie Mae early buy-out sales .................      3.6             --
Amortization and impairment of mortgage servicing rights    (18.5)            --
                                                           ------         ------
   Net loan servicing fees (loss) ......................     (6.4)            --
                                                           ------         ------

Interest expense, net ..................................     (1.7)            --
                                                           ------         ------
   Total revenues ......................................     (8.1)            --
                                                           ------         ------

Salaries and benefits, net .............................      0.8             --
Office supplies and expenses ...........................      0.4             --
Occupancy and equipment ................................      0.1             --
Professional fees ......................................      0.1             --
Other ..................................................      0.5             --
                                                           ------         ------
   Total expenses ......................................      1.9             --
                                                           ------         ------

Loss before income tax benefit .........................    (10.0)            --
Income tax benefit .....................................     (4.0)            --
                                                           ------         ------
Net loss ...............................................   $ (6.0)        $   --
                                                           ======         ======


                                      -14-
<PAGE>

Loan Production Segment

REVENUES

The Loan Production Segment total revenues for the quarter ended March 31, 2003,
were $102.7 million compared to $33.9 million in 2002, an increase of $68.8
million, or 202.6%. The increase was a result of increases in gains on sale of
mortgage loans, net interest income and other income.

Gain on sales of mortgage loans increased to $88.2 million for the first quarter
of 2003 from $30.6 million for the first quarter of 2002, an increase of $57.6
million, or 188.0%. In general, the increase was the result of higher
originations, sales and pipeline values, as well as improved margins. The higher
volumes were a result of lower interest rates, which generated higher purchase
and refinance volumes from existing locations, and the acquisition of Columbia.

Interest income, net, increased to $11.6 million for the first quarter of 2003
from $3.0 million for the first quarter of 2002, an increase of $8.6 million, or
285.6%. The increase resulted primarily from an increase in loans held for sale
and an increase in the Company's interest rate spread on loans held for sale.

Other revenue totaled $2.9 million for the first quarter of 2003 compared to
$0.3 million for the first quarter of 2002. For the quarter ended March 31,
2003, other income primarily consists of fulfillment fees of $1.9 million and
revenue from title services in the amount of $0.5 million. Fulfillment fees of
approximately $1.9 million represent non-recurring fees received from Principal
Residential Mortgage, Inc. ("PRM") for loans closed by the Company on behalf of
PRM. As part of the agreement to acquire the retail branches of PRM (the
"Principal Branches"), the Company agreed to assume the costs incurred to close
out PRM's application pipeline as of the date of the agreement on behalf of PRM
for a per loan fee. For the quarter ended March 31, 2002, other income primarily
consists of volume incentive bonuses received from loan purchasers.

EXPENSES

Salaries, commissions and benefits increased to $43.8 million for the first
quarter of 2003 from $15.0 million for the first quarter of 2002, an increase of
$28.8 million, or 192.2%. The increase was largely due to the inclusion of
expenses of Columbia, increased staffing levels and overtime due to increased
loan volumes, as well as the increase in loan officers due to the acquisition of
the Principal Branches.

Occupancy and equipment expenses increased to $5.5 million for the first quarter
of 2003 from $2.4 million for the first quarter of 2002, an increase of $3.1
million, or 130.7%. The increase in costs reflects the inclusion of expenses of
Columbia and the Principal Branches, the opening of new community loan offices
and greater depreciation charges as a result of the Company's increased
investments in computer networks.

Data processing and communication costs increased to $3.1 million for the first
quarter of 2003 from $1.4 million for the first quarter of 2002, an increase of
$1.6 million, or 112.8%. The increase was a result of the opening of new
community loan offices and the inclusion of expenses of Columbia and the
Principal Branches.

Office supplies and expenses increased to $2.7 million for the first quarter of
2003 from $1.1 million for the first quarter of 2002, an increase of $1.5
million, or 134.4%. The increase was a result of the opening of new community
loan offices and the inclusion of expenses of Columbia and Principal the
Branches.

Marketing and promotion expenses increased to $2.8 million for the first quarter
of 2003 from $1.6 million for the first quarter of 2002, an increase of $1.2
million, or 77.4%. The increase was primarily due to increased loan volume and
an increase in promotional expense attributable to the acquisition of the
Principal Branches.


                                      -15-
<PAGE>

Travel and entertainment expenses increased to $2.0 million for the first
quarter of 2003 from $0.7 million for the first quarter of 2002, an increase of
$1.3 million, or 203.1%. This increase was primarily due to the inclusion of
expenses of Columbia and the addition of new loan originators due to the
acquisition of the Principal Branches.

Professional fees increased to $1.7 million for the first quarter of 2003 from
$0.5 million for the first quarter of 2002, an increase of $1.2 million, or
219.3%. This increase was primarily due to the inclusion of expenses of
Columbia.

Other expenses increased to $3.0 million for the first quarter of 2003 from $0.7
million for the first quarter of 2002, an increase of $2.3 million, or 340.1%.
These expenses, which consist generally of insurance, indemnification and
foreclosure costs, outside services, storage and moving expenses and licenses
and permits, increased as a result of the inclusion of Columbia, the opening of
new community offices and higher loan production.

Income taxes increased to $15.6 million for the first quarter of 2003 from $3.7
million for the first quarter of 2002, an increase of $11.9 million, or 319.0%.

Loan Servicing Segment

The Loan Servicing Segment was immaterial prior to the acquisition of Columbia
in June of 2002 and thus the Loan Servicing Segment results are included in the
Loan Production Segment results in prior periods.

The Loan Servicing Segment's total revenues for the quarter ended March 31,
2003, were a loss of $8.1 million which included a net loan servicing fees loss
of $6.4 million and interest expense, net, of $1.7 million.

Net loan servicing fees was a loss of $6.4 million for the first quarter of
2003. The servicing losses are a result of the reduction in interest rates since
the acquisition which resulted in both faster actual prepayments and higher
forecasted future prepayments than what were expected at the time of the
acquisition. The loss for the first quarter of 2003 resulted primarily from
amortization of $12.8 million and an additional temporary impairment provision
of $5.7 million, increasing the impairment reserve to $15.9 million at March 31,
2003 from $10.2 million at December 31, 2002. The impairment provision is due to
a reduction in the fair value of servicing rights attributable to an increase in
estimated future prepayment speeds. The amortization of $12.8 million is a
result of faster than expected loan repayments.

Total Loan Servicing Segment expenses are associated with the administration of
the servicing portfolio acquired through the Columbia acquisition in June 2002.

Income tax benefit was $4.0 million for the first quarter of 2003.

LIQUIDITY AND CAPITAL RESOURCES

To originate a mortgage loan, the Company draws against a $450 million
pre-purchase facility with UBS Paine Webber ("Paine Webber"), a $450 million
bank syndicated facility led by Residential Funding Corporation ("RFC"), a $300
million facility with CDC IXIS Capital Markets North America Inc. ("CDC") and a
facility of $75 million with Morgan Stanley Bank ("Morgan Stanley"). These
facilities are secured by the mortgages owned by the Company and by certain of
its other assets. Advances drawn under the facilities bear interest at rates
that vary depending on the type of mortgages securing the advances. These loans
are subject to sublimits, advance rates and terms that vary depending on the
type of securing mortgages and the ratio of the Company's liabilities to its
tangible net worth.

The documents governing the Company's warehouse facilities contain a number of
compensating balance requirements and restrictive financial and other covenants
that, among other things, require the Company to maintain a minimum ratio of
total liabilities to tangible net


                                      -16-
<PAGE>

worth and maintain a minimum level of tangible net worth, liquidity,
stockholders' equity and leverage ratios, as well as to comply with applicable
regulatory and investor requirements. The facility agreements also contain
covenants limiting the ability of the Company's subsidiaries to:

      o     transfer or sell assets; and

      o     create liens on the collateral,

without obtaining the prior consent of the lenders, which consent may not be
unreasonably withheld. These limits on its subsidiaries may in turn restrict
American Home's ability, as the holding company, to pay cash or stock dividends
on its stock.

In addition, under the Company's warehouse facilities, the Company cannot
continue to finance a mortgage loan that it holds if:

      o     the loan is rejected as "unsatisfactory for purchase" by the
            ultimate investor and has exceeded its permissible 120-day warehouse
            period;

      o     the Company fails to deliver the applicable mortgage note or other
            documents evidencing the loan within the requisite time period;

      o     the underlying property that secures the loan has sustained a
            casualty loss in excess of 5% of its appraised value; or

      o     the loan ceases to be an eligible loan (as determined pursuant to
            the warehousing agreement).

As of March 31, 2003, the Company's aggregate warehouse facility borrowings were
$901.7 million (including $17.8 million of borrowings under a working capital
sub-limit) and its outstanding drafts payable were $50.3 million, compared to
$728.5 million in borrowings under warehouse facilities (including $15.1 million
of borrowings under a working capital sub-limit) and $42.6 million in drafts
payable as of December 31, 2002. At March 31, 2003, the aggregate amount
available for additional borrowings under the warehouse facilities was $373
million. At March 31, 2003, its loans held for sale were $1.0 billion compared
to $811.2 million at December 31, 2002.

In addition to the Paine Webber, CDC, RFC and Morgan Stanley warehouse
facilities, the Company has purchase and sale agreements with Paine Webber,
Greenwich Capital Financial Products, Inc. and Fannie Mae. These agreements
allow the Company to accelerate the sale of its mortgage loan inventory
resulting in a more effective use of the warehouse facility. The Company has a
combined capacity up to $1.0 billion under these purchase and sale agreements.
Amounts sold and being held under these agreements at March 31, 2003 and
December 31, 2002 were $512 million and $801 million, respectively. At March 31,
2003, the amount unused and available under these agreements was $388 million.
These agreements are not committed facilities and may be terminated at the
discretion of the counterparties.

The Company makes certain representations and warranties under the purchase and
sale agreements regarding, among other things, the loans' compliance with laws
and regulations, their conformity with the ultimate investors' underwriting
standards and the accuracy of information. In the event of a breach of these
representations or warranties or in the event of an early payment default, the
Company may be required to repurchase the loans and indemnify the investor for
damages caused by that breach. The Company has implemented strict procedures to
ensure quality control and conformity to underwriting standards and minimize the
risk of being required to repurchase loans. The Company has been required to
repurchase loans it has sold from time to time; however, these repurchases have
not had a material impact on the Company.

The Company also has a $75 million term loan facility with a bank syndicate led
by RFC which the Company uses to finance its mortgage servicing rights. The term
loan facility expires on May 31, 2003. Interest is based on


                                      -17-
<PAGE>

a spread to the LIBOR and may be adjusted for earnings on escrow balances. At
March 31, 2003 and December 31, 2002, borrowings under the Company's term loan
were $63.7 million and $66.0 million, respectively.

Cash and cash equivalents increased to $31.0 million at March 31, 2003, from
$24.4 million at December 31, 2002.

The Company's primary sources of cash and cash equivalents during the quarter
ended March 31, 2003, were as follows:

      o     $173.3 million increase in warehouse lines of credit;

      o     $ 7.7 million increase in drafts payable;

      o     $ 4.9 million increase in accrued expenses and other liabilities;
            and

      o     $ 3.0 million decrease in accounts receivable.

The Company's primary uses of cash and cash equivalents during the quarter ended
March 31, 2003, were as follows:

      o     $199.9 million net increase in mortgage loans held for sale;

      o     $ 5.8 million increase in mortgage servicing rights;

      o     $ 2.5 million decrease in notes payable; and

      o     $ 2.3 million to purchase furniture and office and computer
            equipment for new branch offices.


COMMITMENTS

The Company had the following commitments (excluding derivative financial
instruments) at March 31, 2003:

<TABLE>
<CAPTION>
                                      Less Than                                After
                            Total      1 Year     1 - 3 Years   4 - 5 Years   5 Years
                           --------   ---------   -----------   -----------   -------
                                                (in thousands)
<S>                        <C>        <C>         <C>           <C>           <C>
Warehouse facilities ...   $901,741   $ 901,741   $        --   $        --   $    --

Operating leases .......     16,904       6,813         7,296         2,601       194

Notes payable ..........     65,802      64,288           594           184       736
</TABLE>

FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended, which are
intended to be covered by the safe harbors created thereby. The words "plan,"
"believe," "anticipate," "estimate," "expect," "objective," "projection,"
"forecast," "goal" or similar words are intended to identify forward-looking
statements. Such statements involve risks and uncertainties that exist in the
Company's operations and business environment that could render actual outcomes
and results materially different than predicted. The Company's forward-looking
statements are based on assumptions about many factors, including, but not
limited to, general volatility of the capital markets; changes in the real
estate market, interest rates or the general economy of the markets in which the
Company operates; economic, technological or regulatory changes affecting the
use of the Internet; and changes in government regulations that are applicable
to the Company's regulated brokerage and property management businesses. While
the Company believes that its assumptions are reasonable at the time
forward-looking statements are made, it cautions that it is impossible to
predict the actual outcome of numerous factors and, therefore, readers should
not place undue reliance on such statements. Forward-


                                      -18-
<PAGE>

looking statements speak only as of the date they are made, and the Company
undertakes no obligation to update such statements in light of new information
or future events.


                                      -19-
<PAGE>

                                     ITEM 3.

           QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Movements in interest rates can pose a major risk to the Company in either a
rising or declining interest rate environment. The Company depends on
substantial borrowings to conduct its business. These borrowings are all done at
variable interest rate terms which will increase as short term interest rates
rise. Additionally, when interest rates rise, loans held for sale and any
applications in process with locked-in rates decrease in value. To preserve the
value of such loans or applications in process with locked-in rates, agreements
are executed for mandatory loan sales to be settled at future dates with fixed
prices. These sales take the form of forward sales of mortgage-backed
securities.

When interest rates decline, fallout may occur as a result of customers
withdrawing their applications. In those instances, the Company may be required
to purchase loans at current market prices to fulfill existing mandatory loan
sale agreements, thereby incurring losses upon sale. The Company uses an
interest rate hedging program to manage these risks. Through this program,
mortgage-backed securities are purchased and sold forward and options are
acquired on treasury futures contracts.

In the event that the Company does not deliver into the forward delivery
commitments or exercise its option contracts, the instruments can be settled on
a net basis. Net settlement entails paying or receiving cash based upon the
change in market value of the existing instrument. All forward delivery
commitments and option contracts to buy securities are to be contractually
settled within six months of the balance sheet date.

The Company's hedging program contains an element of risk because the
counterparties to its mortgage and treasury securities transactions may be
unable to meet their obligations. While the Company does not anticipate
nonperformance by any counterparty, it is exposed to potential credit losses in
the event the counterparty fails to perform. The Company's exposure to credit
risk in the event of default by a counterparty is the difference between the
contract and the current market price. The Company minimizes its credit risk
exposure by limiting the counterparties to well-capitalized banks and securities
dealers who meet established credit and capital guidelines.

Movements in interest rates also impact the value of mortgage servicing rights.
When interest rates decline, the loans underlying the mortgage servicing rights
are generally expected to prepay faster, which reduces the market value of the
mortgage servicing rights. The Company considers the expected increase in loan
origination volumes and the resulting additional origination related income as a
natural hedge against the expected change in the value of mortgage servicing
rights. Lower mortgage rates generally reduce the fair value of the mortgage
servicing rights, as increased prepayment speeds are highly correlated with
lower levels of mortgage interest rates.


                                      -20-
<PAGE>

The following tables summarize the Company's interest rate sensitive
instruments:

<TABLE>
<CAPTION>
                                          MARCH 31, 2003           DECEMBER 31, 2002
                                     -----------------------    -----------------------
                                      NOTIONAL                   NOTIONAL
                                       AMOUNT     FAIR VALUE      AMOUNT     FAIR VALUE
                                     ----------   ----------    ----------   ----------
                                                       (in thousands)
<S>                                  <C>          <C>           <C>          <C>
Commitments to fund mortgages
   at agreed-upon rates ..........   $2,360,335   $   37,453    $1,644,701   $   29,345
Loans held for sale ..............      977,235    1,013,090       788,191      815,050
Mortgage servicing rights ........    7,921,734       96,373     8,541,790      109,023
Forward delivery commitments .....    2,615,860       (1,463)    1,763,450       (9,070)
Option contracts to buy securities      500,000          554       150,000          725
</TABLE>

The Company has total commitments to lend of $5.3 billion at March 31, 2003.

A detailed discussion of market risk is provided in the Company's Annual Report
on Form 10-K for the period ended December 31, 2002.

                                     ITEM 4.

                             CONTROLS AND PROCEDURES

Within the 90 days prior to the date of this Form 10-Q, an evaluation was
performed under the supervision and with the participation of the Company's
management, including the Chief Executive Officer, Chief Financial Officer and
Principal Accounting Officer, of the effectiveness of the design and operation
of the Company's disclosure controls and procedures. Based on that evaluation,
the Company's management, including the Chief Executive Officer, Chief Financial
Officer and Principal Accounting Officer, concluded that its disclosure controls
and procedures are effective. There have been no significant changes in the
Company's internal controls and procedures or in other factors that could
significantly affect internal controls subsequent to the date the Company
carried out its evaluation.


                                      -21-
<PAGE>

                            PART II-OTHER INFORMATION

                                     ITEM 2.

                    CHANGES IN SECURITIES AND USE OF PROCEEDS

The following is a description of the Company's securities that were not
registered under the Securities Act of 1933, as amended (the "Securities Act"),
which were sold during the quarter ended March 31, 2003.

The Company acquired First Home Mortgage Corp. ("First Home") on June 30, 2000.
In addition to the shares paid to former First Home shareholders as initial
consideration, the Company is required to issue unregistered shares of common
stock to the former shareholders as additional consideration under the earnout
provisions of the merger agreement. On January 2, 2003, pursuant to these
earnout provisions, the Company issued an aggregate of 7,227 shares of common
stock to such shareholders as additional consideration. In addition, on February
15, 2003, the Company issued an aggregate of 6,600 shares of common stock to
such shareholders pursuant to the earnout provisions. These securities were
exempt from registration under Section 4(2) of the Securities Act because they
were issued pursuant to the terms of a private transaction rather than through a
public offering.

                                     ITEM 6.

                        EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits.

      The following exhibits are filed as part of this Quarterly Report on Form
      10-Q:

      Exhibit 99.1      Certification of Chief Executive Officer

      Exhibit 99.2      Certification of Chief Financial Officer

(b)   Reports on Form 8-K.

During the quarter ended March 31, 2003, the Company filed a Report on Form 8-K
on February 6, 2003. The Report on Form 8-K reported that the Company entered
into a definitive agreement to purchase the retail branches of Principal
Residential Mortgage, Inc., under Item 5 of Form 8-K.


                                      -22-
<PAGE>

                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                        AMERICAN HOME MORTGAGE HOLDINGS, INC.
                                                     (Registrant)

Date: May 15, 2003                      By:      /s/ Michael Strauss
                                            ------------------------------------
                                                     Michael Strauss
                                            Chairman of the Board, President
                                              and Chief Executive Officer


Date: May 15, 2003                      By:       /s/ Stephen A. Hozie
                                            ------------------------------------
                                                      Stephen A. Hozie
                                                  Chief Financial Officer


                                      -23-
<PAGE>

CERTIFICATIONS

I, Michael Strauss, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of American Home
      Mortgage Holdings, Inc.;

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the Registrant as of, and for, the periods presented in this
      quarterly report;

4.    The Registrant's other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the Registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this
            quarterly report is being prepared;

      b)    evaluated the effectiveness of the Registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

      c)    presented in this quarterly report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The Registrant's other certifying officer and I have disclosed, based on
      our most recent evaluation, to the Registrant's auditors and the audit
      committee of Registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the Registrant's ability to
            record, process, summarize and report financial data and have
            identified for the Registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the Registrant's
            internal controls; and

6.    The Registrant's other certifying officer and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.


/s/ Michael Strauss
-----------------------------------
Michael Strauss
Chief Executive Officer
May 15, 2003

<PAGE>

CERTIFICATIONS

I, Stephen A. Hozie, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of American Home
      Mortgage Holdings, Inc.;

2.    Based on my knowledge, this quarterly report does not contain any untrue
      statement of a material fact or omit to state a material fact necessary to
      make the statements made, in light of the circumstances under which such
      statements were made, not misleading with respect to the period covered by
      this quarterly report;

3.    Based on my knowledge, the financial statements, and other financial
      information included in this quarterly report, fairly present in all
      material respects the financial condition, results of operations and cash
      flows of the Registrant as of, and for, the periods presented in this
      quarterly report;

4.    The Registrant's other certifying officer and I are responsible for
      establishing and maintaining disclosure controls and procedures (as
      defined in Exchange Act Rules 13a-14 and 15d-14) for the Registrant and we
      have:

      a)    designed such disclosure controls and procedures to ensure that
            material information relating to the Registrant, including its
            consolidated subsidiaries, is made known to us by others within
            those entities, particularly during the period in which this
            quarterly report is being prepared;

      b)    evaluated the effectiveness of the Registrant's disclosure controls
            and procedures as of a date within 90 days prior to the filing date
            of this quarterly report (the "Evaluation Date"); and

      c)    presented in this quarterly report our conclusions about the
            effectiveness of the disclosure controls and procedures based on our
            evaluation as of the Evaluation Date;

5.    The Registrant's other certifying officer and I have disclosed, based on
      our most recent evaluation, to the Registrant's auditors and the audit
      committee of Registrant's board of directors (or persons performing the
      equivalent function):

      a)    all significant deficiencies in the design or operation of internal
            controls which could adversely affect the Registrant's ability to
            record, process, summarize and report financial data and have
            identified for the Registrant's auditors any material weaknesses in
            internal controls; and

      b)    any fraud, whether or not material, that involves management or
            other employees who have a significant role in the Registrant's
            internal controls; and

6.    The Registrant's other certifying officer and I have indicated in this
      quarterly report whether or not there were significant changes in internal
      controls or in other factors that could significantly affect internal
      controls subsequent to the date of our most recent evaluation, including
      any corrective actions with regard to significant deficiencies and
      material weaknesses.


/s/ Stephen A. Hozie
-----------------------------------
Stephen A. Hozie
Chief Financial Officer
May 15, 2003