EXHIBIT 99.1


[AHM LOGO]


FOR IMMEDIATE RELEASE
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          American Home Mortgage to Acquire Waterfield Financial Corp.


Melville, NY - January 13, 2006 - American Home Mortgage Investment Corp. (NYSE:
AHM), announced today that it has signed a definitive agreement to acquire
Waterfield Financial Corporation, a subsidiary of Union Federal Bank of
Indianapolis, which includes 46 retail, wholesale and correspondent mortgage
loan production branches in 16 states.

In conjunction with the transaction, American Home expects to purchase 100% of
the capital stock of Waterfield Financial at a purchase price equal to the book
value of Waterfield's net assets on the closing date of the acquisition.
Waterfield's primary assets are newly originated loans carried at the lower of
cost or market which American Home expects to sell shortly after the acquisition
is consummated. In addition, Waterfield has a nominal amount of fixtures and
other property associated with its loan production businesses that will remain
on American Home's books. The acquisition of Waterfield is expected to close in
January 2006, and is subject to customary closing conditions. American Home
expects the acquisition of Waterfield to increase American Home's loan volume
and to have a limited accretive affect on earnings. Potential benefits from the
transaction however are difficult to quantify and will depend on a number of
factors.

Michael Strauss, American Home's Chairman and Chief Executive Officer,
commented, "The acquisition of Waterfield is consistent with American Home's
ongoing strategy of expanding our origination franchise through low-cost
acquisitions. I am highly impressed with the strong management and sales teams
at Waterfield, which has a long history of industry leadership. I am very
pleased to welcome Waterfield into our corporate family.

I appreciate that the timing of American Home's acquisition of Waterfield is
awkward given our company's news release yesterday indicating that we expect to
earn only a small profit in the fourth quarter of 2005. We have been attempting
to negotiate terms to enable us to acquire Waterfield for some time, and it is
unfortunate that an agreement was reached nearly coinciding with our
determination that it was necessary to lower our earnings guidance. Still, I am
glad for the opportunity to expand our production business through a book value
acquisition of a proven franchise, and I believe Waterfield will further
strengthen our company."

American Home Mortgage Investment Corp. is a mortgage real estate investment
trust (REIT) focused on earning net interest income from self-originated
mortgage-backed securities, and through its taxable subsidiaries, from
originating and servicing mortgage loans for institutional investors. Mortgages
are originated through a network of loan production offices as well as through
mortgage brokers and correspondents and are serviced at the Company's Irving,
Texas servicing center. For additional information, please visit the Company's
website at www.americanhm.com.

This news release contains "forward-looking statements" that are based upon
expectations, estimates, forecasts, projections and assumptions. Any statement
in this news release that is not a statement of historical fact, including, but
not limited to, earnings guidance and forecasts, projections of financial
results and loan origination volume, expected future financial position,
dividend plans or business strategy, and any other statements of plans,
expectations, objectives, estimates and beliefs, is a forward- looking
statement. Words such as "look forward," "will," "anticipate," "may," "expect,"
"plan," "believe," "intend," "opportunity," "potential," and similar words, or
the negatives of those words, are intended to identify forward-looking
statements. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that are difficult to predict, and are not
guarantees of future performance. As a result, actual future events may differ
materially from any future results, performance or achievements expressed in or
implied by this news release. Specific factors that might cause such a
difference include, but are not limited to: American Home's limited operating
history with respect to its portfolio strategy; the potential fluctuations in
American Home's operating results; American Home's potential need for additional
capital; the direction of interest rates and their subsequent effect on the
business of American Home and its subsidiaries; risks associated with the use of
leverage; changes in federal and state tax laws affecting REITs; federal and
state regulation of mortgage banking; and those risks and uncertainties
discussed in filings made by American Home with the Securities and Exchange
Commission. Such forward-looking statements are inherently uncertain, and
stockholders must recognize that actual results may differ from expectations.
American Home does not assume any responsibility, and expressly disclaims any
responsibility, to issue updates to any forward-looking statements discussed in
this news release, whether as a result of new information, future events or
otherwise.

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CONTACT:

Mary M. Feder
Vice President, Investor Relations
(631) 622-6469
mary.feder@americanhm.com