DAVIS COUNTY --Don't panic! That's the word from local real estate and mortgage professionals in Davis County after American Home Mortgage Investment Corp., one of the nation's top mortgage companies, filed for bankruptcy on Monday. The impact of this move is being felt here in Utah as a few offices in the Salt Lake City area have been forced to either change affiliations or stop accepting loan applications altogether.

Here in Davis County, however, according to two professionals, it's business as usualÖsort of.

"People should not be panicking over the changes that have occurred these last few days," said Jason Cheshire, a mortgage broker with Integrity Home Loans in Centerville. "Homes in Davis County are still appreciating, even if it's slowed a bit, and that should keep our local market strong."

But while the Davis County real estate market remains relatively strong as a whole, Cheshire does expect certain trends to continue with the disruption of American Home Mortgage's bankruptcy.

"The biggest things people are going to experience are the sub prime loans being tighter," Cheshire said. "People with lower credit scores will have a more difficult time getting approved for loans and programs like stated incomes and stated assets will be more difficult for people to apply for."

Many companies have completely gone away from stated income or stated asset programs for second mortgages.

Stated income and stated asset programs are for people who have extremely high credit scores. In many cases, these people have been able to provide much less verification on the amount of money and value of their assets. Banks often "believe" people with such high credit scores have such proven track records of success they can be "trusted."

Many in the industry believe the foundations to the problem lenders are facing today were laid two to three years ago when adjustable rate mortgages (ARMS) were being offered at extremely low rates. Now, as those ARMS are running their course and interest rates have increased, homeowners are facing massive increases in their mortgage payments.

"Some people are seeing their mortgage payment increasing by $200 to $600 per month," Cheshire said. "That is too much and people are being forced to foreclose because many can't get the value they need by selling."

Utah is still better than many areas of the nation.

"In Las Vegas , for example, values have dropped significantly and it's hurting home owners," Cheshire said.

The changes in the sub prime and stated loans is something Chad Morris of Smoot Real Estate has noticed, but, like Cheshire, he doesn't believe the sky is falling.

"It's still business as usual and I don't think there is any reason for people to get upset," Morris said.

He agrees with the trickle- down effect noted by Cheshire and believes Davis County will continue to stay strong.

Some experts believe there will be buyers who will try to purchase a home sooner than later to avoid the residual problems of American Home Mortgage's bankruptcy.

This, however, isn't something either Morris or Cheshire has seen.

"It's early, but I don't think we're going to see that big of a change here in Davis County," Morris said.