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New American Home Mortgage collapses
[link|http://money.cnn.com/2007/07/31/news/companies/american_home.reut/index.htm?postversion=2007073115|CNN]
American Home Mortgage Investment Corp. said on Tuesday it can no longer fund home loans and may liquidate assets, putting its survival in doubt and sending its shares plummeting 90 percent.

The large U.S. mortgage provider and real estate investment trust said its lenders cut off access to credit, leaving it without cash on Monday to fund $300 million of loans it had agreed to make.

American Home offers "Alt-A" mortgages, which fall between prime and subprime in quality, and recently held a roughly 2.5 percent share of the U.S. mortgage market.

Not clear yet what will happen, they will probably have to go Chapter 11. They are holding out for finding a White Knight to provide financing, but in this market that isn't going to happen. If this company was really doing 2.5 percent of all US mortgages, they are not a trivial player, though not a big one either.

This probably isn't the end of the pain for mortgage companies either, I expect several more to have problems before this is over.

Jay
New I wonder what Krugman has to say about this.
bcnu,
Mikem

Microsoft Vista. The best reason ever to buy a Mac.
New It's been a lot more companies than most realize
the [link|http://ml-implode.com/|http://ml-implode.com/] says 105 mortgage companies now out of business - and,yes, it is going to get worse, and yes, that something like this was going to happen was just as predictable as the dot-bomb collapse.

--Tony
     American Home Mortgage collapses - (JayMehaffey) - (2)
         I wonder what Krugman has to say about this. -NT - (mmoffitt)
         It's been a lot more companies than most realize - (tonytib)

C:>_
94 ms