HANOVER CAPITAL MORTGAGE HOLDINGS INC
EMPLOYMENT AGREEMENT (J. BURCHETT)
<DOCUMENT>
<TYPE>EX-10.8.1
<SEQUENCE>2
<FILENAME>b38159hcex10-8_1.txt
<DESCRIPTION>EMPLOYMENT AGREEMENT (J. BURCHETT)
<TEXT>

<PAGE>   1
                                                                  Exhibit 10.8.1


                               AMENDMENT NUMBER ONE

                       TO THE EMPLOYMENT AGREEMENT BETWEEN

          HANOVER CAPITAL MORTGAGE HOLDINGS, INC. AND JOHN A. BURCHETT

         This Amendment, effective as of August 10, 2000, by and among Hanover
Capital Mortgage Holdings, Inc., having an address at 90 West Street, Suite
2210, New York, New York 10006 (the "Company") and John A. Burchett (the
"Employee"), an individual whose residence is 896 Highland Avenue, Westfield,
New Jersey, 07090, to the Employment Agreement, effective as of September 19,
1997, between the Company and the Employee (the "Agreement"). Capitalized terms
used but not otherwise defined herein shall have the meanings assigned to such
terms in the Agreement.

         1.       Section 1 of the Agreement is hereby amended by deleting the
last sentence of such Paragraph and inserting in its place the following:

                  Subject to Sections 9(a) and 9(g) of this Agreement, this
         Agreement shall be automatically extended upon each anniversary date of
         the Effective Date for a successive five year term commencing on such
         anniversary of the Effective Date unless the Employee or the Company
         gives the other party not less than three (3) months written notice
         prior to any anniversary of the Effective Date. Upon the date of each
         automatic extension, the Expiration Date shall be the date ending five
         years thereafter.

         2.       This amendment shall be construed in accordance with the laws
of the State of New York and the obligations, rights, and remedies of the
parties hereunder shall be determined in accordance with such laws without
regard to conflict of laws doctrine applied in such state.

         3.       This Amendment may be executed in any number of counterparts,
each of which shall constitute an original and all of which, taken together,
shall constitute one instrument.

         4.       Except as amended above, the Agreement shall continue in full
force and effect in accordance with its terms.

         IN WITNESS WHEREOF, the Employee has executed this Amendment and the
Company has caused this Amendment to be executed and delivered by a duly
authorized officer as of the day and year first above written.

                             COMPANY:

                             HANOVER CAPITAL MORTGAGE HOLDINGS, INC.


                             By:
                                 -----------------------------------------------
                             Name: John A. Burchett
                             Title: President

                             EMPLOYEE:

                             ---------------------------------------------------
                             John A. Burchett
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</DOCUMENT>
