American Home Mortgage Shuts Down
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I think I am beginning to see a pattern.....
American Home Mortgage to close Friday: report
Mortgage lender American Home Mortgage Investment Corp is closing its doors on Friday, and has told employees they will be laid off, according to the Long Island newspaper Newsday, citing an e-mail to employees from Chief Executive Michael Strauss. -
The news shows how problems in the U.S. mortgage market are broadening, as credit quality issues begin to affect lenders that focused on borrowers with decent credit, as opposed to "subprime" borrowers thought to be greater risks....
Kirby McInerney & Squire LLP Announces Class Action Lawsuit On Behalf of American Home Mortgage Investment Corp. Investors
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Kirby McInerney & Squire, LLP announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of American Home Mortgage Investment Corp. ("American Home Mortgage" or the "Company") (Nasdaq:AHM) between April 26, 2006 and July 30, 2007, inclusive, (the "Class Period"). --
The lawsuit alleges that American Home Mortgage and certain of its officers and directors violated Federal Securities laws. According to the complaint, throughout the Class Period defendants failed to disclose, among other things, that the Company was operating without adequate reserves for delinquent loan repurchases or an adequate strategic plan in relation to the volatility of certain of American Home Mortgage's loan products. As a result of defendants' failure to fully disclose that the Company was operating without adequate reserves in relation to the Company's prior sales of certain of American Home Mortgage's loan products or an adequate strategic plan for the repurchase of delinquent previously sold loans, defendants materially misrepresented to investors the true facts concerning American Home Mortgage's financial performance and prospects....
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DJO had this comment on another thread....
So who is going to be next - Accredited Home Lenders Holding Co.?
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I think I am beginning to see a pattern.....
American Home Mortgage to close Friday: report
Mortgage lender American Home Mortgage Investment Corp is closing its doors on Friday, and has told employees they will be laid off, according to the Long Island newspaper Newsday, citing an e-mail to employees from Chief Executive Michael Strauss. -
The news shows how problems in the U.S. mortgage market are broadening, as credit quality issues begin to affect lenders that focused on borrowers with decent credit, as opposed to "subprime" borrowers thought to be greater risks....
Kirby McInerney & Squire LLP Announces Class Action Lawsuit On Behalf of American Home Mortgage Investment Corp. Investors
..
Kirby McInerney & Squire, LLP announces that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of American Home Mortgage Investment Corp. ("American Home Mortgage" or the "Company") (Nasdaq:AHM) between April 26, 2006 and July 30, 2007, inclusive, (the "Class Period"). --
The lawsuit alleges that American Home Mortgage and certain of its officers and directors violated Federal Securities laws. According to the complaint, throughout the Class Period defendants failed to disclose, among other things, that the Company was operating without adequate reserves for delinquent loan repurchases or an adequate strategic plan in relation to the volatility of certain of American Home Mortgage's loan products. As a result of defendants' failure to fully disclose that the Company was operating without adequate reserves in relation to the Company's prior sales of certain of American Home Mortgage's loan products or an adequate strategic plan for the repurchase of delinquent previously sold loans, defendants materially misrepresented to investors the true facts concerning American Home Mortgage's financial performance and prospects....
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DJO had this comment on another thread....
..now there's this little gem, courtesy of our friend Genesis over at Market Ticker, posted on the forums.
AHM has pulled it's dividend payment. This is for an ex-dividend date payment. That means people who own the stock already have the money credited to their accounts by their brokers. There is a long thread on just that topic over at the Yahoo forum! This is going to be ugly...
Quote:
Press Release Source: American Home Mortgage Investment Corp.
American Home Mortgage Investment Corp. Delays Payment of Quarterly Common Stock and Series A and Series B Preferred Stock Dividends
The disruption in the credit markets in the past few weeks has been unprecedented in the Company's experience and has caused major write-downs of its loan and security portfolios and consequently has caused significant margin calls with respect to its credit facilities.
The quarterly cash dividend of $0.70 per share on the Company's common stock had been declared on June 15, 2007 and was to be paid on July 27, 2007 to all shareholders of record as of July 9, 2007. The Series A Preferred Stock dividend and Series B Preferred Stock dividend had been declared on June 15, 2007 and are payable on July 31, 2007, to shareholders of record as of July 9, 2007.
So who is going to be next - Accredited Home Lenders Holding Co.?
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Comments
2) Do not collect payments.
3) Close down business.
4) ...
5) Profit!
4) cover your shorts?
I would short the hell out of an already depressed LEND today if you have some extra pocket cash. You heard it here first!
This blog's really starting to heat up.
disclosure: I've been short a couple lenders for almost a year, but not LEND.
I don't have any money anyway, or I would have shorted the entire mortgage industry six months ago!
When the company itself says something like they aren't sure if they will continue to to be a "going concern", insider info is pretty unnecessary.
American Home Mortgage files for bankruptcy
....Last week, the company said it was cutting most of its 7,000 workers and would no longer accept mortgage applications, although it is maintaining its thrift and servicing businesses. American Home Mortgage had been facing margin calls from its own lenders following the recent shakeup in the mortgage markets.
The trouble started in subprime mortgages, which are designed for home buyers with shakier credit histories, but has spread into other credit markets. Delinquencies have surged after the housing bust, which has strained lenders who wrote the loans.
American Home Mortgage specialized in so-called Alt-A mortgages, which are offered to more creditworthy borrowers than subprime loans, but they often have adjustable rates and sometimes require little or no documentation.
The company said it filed for bankruptcy "after carefully assessing the sudden adverse impact on the company's liquidity and business from the extraordinary disruptions now occurring in the secondary mortgage and real estate markets....
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