AHM Bankruptcy????

[Havasu Luvr]

This is not good. Big meeting this morning in the high desert office. The wife maybe looking for something new.....
AHM Verges on Bankruptcy
By DAN SEYMOUR 07.31.07, 3:53 PM ET
Popular Videos
Driving The Flying Spur
A Future of Mixed Media
The New Age of NASCAR
Hefner: Playboy's Bunnies Multiply
Working For P-diddy
Related Quotes
AHM 1.04 - 9.43
BSC 121.22 - 6.03
CFC 28.17 - 1.10
DB 136.28 + 1.52
FHN 31.72 - 0.58
JPM 44.01 - 0.74
LAZ 37.03 + 0.88
MTB 106.29 - 0.87
NEWCQ 0.25 - 0.01
UBS 55.07 + 0.12
WFC 33.77 - 0.84
Most Popular Stories
Can Your Finances Survive Long-Term Care?
Cutting Hospitals Out Of Surgery
Medical Symptoms You Shouldn't Ignore
Top 20 Most Dangerous Vehicles
A Five-Year Plan For Retirement
MELVILLE, N.Y. -
American Home Mortgage Investment Corp. said Tuesday it has run out of cash, raising the specter of bankruptcy for the beleaguered mortgage lender and sending its shares down 90 percent.
The news also reversed a rally on Wall Street and sent stocks into negative territory, as fears of worsening credit conditions deflated a market that had been boosted by strong earnings reports.
The struggling mortgage lender said its financial backers have essentially pulled the plug. The Wall Street banks that lend American Home Mortgage money for home loans - which include firms like UBS AG, Bear Stearns Cos., and JPMorgan Chase & Co. - will not extend the company any more money, and some have demanded back they money they have lent.

[HM]

I had heard they stopped funding loans as of yesterday. More to come I am sure.

[SummitKarl]

Yikes...not good ..they are a big one..
maybe the Fed's will get the idea it's time to cut interest rates:idea:

[duner21]

We were told yesterday to switch any loans we had in the pipeline with them. Bad deal for sure. Glad i had none with them.

[Mandelon]

I just came out of a meeting with one of the larger REO brokers in Eastlake. He cited many examples of home prices down $250,000 to $500,000 on some of his higher priced homes and many smaller homes that have dropped in value over $150K.
He is losing sales of these foreclosed home due to tightening lender standards as well. We are seeing just huge numbers of foreclosures coming up.....its spreading to higher grade paper as well. Better homes, better neighborhoods....works well for me.....its higher priced rehabs.. :D

[meaniam]

damn would have been nice to short them in the market. dont really know much about doing this but know someone who has made out well with shorting freemont and new century. i know he thought about shorting countrywide about 2 months ago. wonder if it worked for him? he states it is like gambling

[talkinghead]

All of this subprime hoopla may take us into a recession if it hasn't already..
Time to batten down the hatches.

[HocusPocus]

All of this subprime hoopla may take us into a recession if it hasn't already..
Time to batten down the hatches.
its not just the subprime thats a problem.
But while most of the bankrupt lenders catered to "subprime" borrowers — or borrowers with checkered credit histories — almost none of American Home Mortgage's $58.9 billion in loans last year were classified as subprime.
American Home Mortgage specializes in adjustable-rate mortgages, which carry interest rates that reset according to certain benchmark interest rates. This type of debt has hamstrung a lot of borrowers in the past year because interest rates have jumped.
The company also lends to so-called Alt-A borrowers, or borrowers that cannot document their income. While Alt-A credit is not considered as unreliable as subprime, it is a step down from prime. Some banks, such as M&T Bank Corp., have recorded accounting charges this year assuming a worsening in Alt-A mortgage credit.