AMERICAN MORTGAGE ACCEPTANCE COMPANY
                   PROVIDES UPDATE ON MARKET CONDITION IMPACT

NEW YORK, NY - DECEMBER 7, 2007 - American Mortgage  Acceptance  Company ("AMAC"
or the "Company")  (AMEX: AMC) today provided an update on the impact of current
market conditions on the Company.

As discussed  on the  Company's  third  quarter  earnings  call,  recent  market
conditions  have led to a reduction of liquidity  across the credit  spectrum of
mortgage  products.  As a result of widening credit spreads on certain of AMAC's
assets,  coupled  with a  decline  in  yields on US  Treasury  securities,  AMAC
received  margin  calls  on  some of the  Company's  repurchase  facilities  and
interest  rate  derivative  contracts.  To meet these  margin calls and increase
liquidity for future cash needs, AMAC sold the remainder of the Company's Fannie
Mae and Ginnie Mae debt securities and two commercial mortgage-backed securities
("CMBS").  In  connection  with the sale of these  assets  and based  upon their
amortized cost at the time of sale, the  transactions  resulted in $12.5 million
of  realized  losses to the  Company,  as well as $1.0  million of net  realized
losses due to the  termination  of interest  rate swap  contracts.  Due to these
realized  losses,  AMAC's previous  adjusted fund from  operations  ("AFFO") per
share  guidance  of $0.95 - $1.00 for 2007 is no longer a relevant  forecast  of
expected AFFO and is withdrawn.

In the interest of preserving the Company's liquidity,  AMAC's Board of Trustees
has  decided  not  to  declare  a  dividend  payment  to  the  Company's  common
shareholders  for the  fourth  quarter of 2007.  AMAC's  Board of  Trustees  did
declare a dividend  distribution  of $0.453 per share for AMAC's  7.25% Series A
Cumulative  Convertible  Preferred  Shares  which will be payable on January 15,
2008, to shareholders of record as of December 31, 2007.

"While the  credit  quality  of our  portfolio  remains  stable,  severe  market
volatility  continues  its  negative  impact on the value of our  assets and our
short-term  liquidity," said J. Larry Duggins,  Chief Executive Officer of AMAC.
"We may need to sell additional  assets to meet future margin calls and maintain
adequate liquidity,  which could lead to future losses.  Management is exploring
all strategic options to protect and maintain the value of our Company."

                                       ###

ABOUT AMAC
AMAC is a real estate  investment  trust that  specializes  in  originating  and
acquiring  mortgage loans and other debt instruments  secured by multifamily and
commercial  properties  throughout the United States. AMAC invests in mezzanine,
construction and first mortgage loans,  subordinated interests in first mortgage
loans,  bridge loans,  subordinate  commercial  mortgage backed securities,  and
other real estate  assets.  For more  information,  please  visit our website at
http://www.americanmortgageco.com  or contact the Investor Relations  Department
directly at (800) 831-4826.


###

CERTAIN  STATEMENTS IN THIS DOCUMENT MAY CONSTITUTE  FORWARD-LOOKING  STATEMENTS
WITHIN THE MEANING OF THE "SAFE  HARBOR"  PROVISIONS  OF THE PRIVATE  SECURITIES
LITIGATION  REFORM  ACT OF 1995.  THESE  STATEMENTS  ARE  BASED ON  MANAGEMENT'S
CURRENT  EXPECTATIONS  AND  BELIEFS  AND ARE  SUBJECT TO A NUMBER OF FACTORS AND
UNCERTAINTIES  THAT COULD CAUSE ACTUAL RESULTS TO DIFFER  MATERIALLY  FROM THOSE
DESCRIBED IN THE FORWARD-LOOKING  STATEMENTS.  THESE RISKS AND UNCERTAINTIES ARE
DETAILED  IN  AMAC'S  MOST  RECENT  ANNUAL  REPORT ON FORM 10-K AND IN ITS OTHER
FILINGS WITH THE SECURITIES AND EXCHANGE  COMMISSION AND INCLUDE,  AMONG OTHERS,
RISKS OF INVESTING IN NON-INVESTMENT  GRADE COMMERCIAL REAL ESTATE  INVESTMENTS;
COMPETITION  IN ACQUIRING  DESIRABLE  INVESTMENTS;  INTEREST RATE  FLUCTUATIONS;
RISKS  ASSOCIATED WITH  INVESTMENTS IN REAL ESTATE  GENERALLY AND THE PROPERTIES
WHICH SECURE MANY OF OUR INVESTMENTS;  GENERAL ECONOMIC  CONDITIONS AND ECONOMIC
CONDITIONS IN THE REAL ESTATE MARKETS SPECIFICALLY,  PARTICULARLY AS THEY AFFECT
THE VALUE OF OUR ASSETS AND THE CREDIT  STATUS OF OUR  BORROWERS;  DEPENDENCE ON
OUR ADVISOR FOR ALL SERVICES  NECESSARY FOR OUR OPERATIONS;  CONFLICTS WHICH MAY
ARISE AMONG US AND OTHER ENTITIES  AFFILIATED WITH OUR ADVISOR THAT HAVE SIMILAR
INVESTMENT POLICIES TO OURS; RISKS ASSOCIATED WITH THE REPURCHASE  AGREEMENTS WE
UTILIZE TO FINANCE  OUR  INVESTMENTS  AND OUR  ABILITY TO RAISE  CAPITAL;  RISKS
ASSOCIATED  WITH  FAILURE TO QUALIFY AS A REIT;  AND RISKS  ASSOCIATED  WITH OUR
COLLATERALIZED  DEBT  OBLIGATION  ("CDO")  SECURITIZATION  TRANSACTIONS,   WHICH
INCLUDE,  BUT ARE NOT LIMITED TO, THE INABILITY TO ACQUIRE ELIGIBLE  INVESTMENTS
FOR A CDO ISSUANCE;  INTEREST RATE  FLUCTUATIONS ON VARIABLE-RATE  SWAPS ENTERED
INTO TO HEDGE  FIXED-RATE  LOANS;  THE  INABILITY TO FIND  SUITABLE  REPLACEMENT
INVESTMENTS WITHIN REINVESTMENT PERIODS AND THE NEGATIVE IMPACT ON OUR CASH FLOW
THAT MAY RESULT FROM THE USE OF CDO FINANCINGS WITH  OVER-COLLATERALIZATION  AND
INTEREST  COVERAGE  REQUIREMENTS.  READERS  ARE  CAUTIONED  NOT TO  PLACE  UNDUE
RELIANCE ON THESE FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE OF
THIS DOCUMENT.  WE EXPRESSLY  DISCLAIM ANY OBLIGATIONS OR UNDERTAKING TO RELEASE
PUBLICLY ANY UPDATES OR REVISIONS TO ANY  FORWARD-LOOKING  STATEMENTS  CONTAINED
HEREIN TO REFLECT ANY CHANGE IN OUR  EXPECTATIONS  WITH REGARD THERETO OR CHANGE
IN EVENTS, CONDITIONS, OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENT IS BASED.

                                       ###