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CkGm
They get so big, so fast :(
Member since 5/05 13848 total posts
Name:
Christine
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Re: we just got horrible news...mini update pg 2
Hopefully it will lead to an even better job for him
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Posted 7/31/07 4:25 PM  |
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Long Island Weddings
Long Island's Largest Bridal Resource |
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Re: we just got horrible news...mini update pg 2
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| Posted 7/31/07 4:45 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: we just got horrible news...mini update pg 2
This was just released on CNN
NEW YORK (Reuters) -- American Home Mortgage Investment Corp., a large U.S. mortgage provider, said on Tuesday it can no longer fund home loans and may liquidate assets, putting its survival in doubt.
The Melville, New York-based real estate investment trust retained Milestone Advisors and Lazard to help it evaluate options and advise "with respect to the sourcing of additional liquidity including the orderly liquidation of its assets."
Shares of American Home (Charts), which had not traded since Friday, sank $9.15, or 87.4 percent, to $1.32, after the announcement. They traded as high as $36.36 in December.
American Home's announcement shows how concerns about credit quality and homeowner defaults have spread beyond subprime lenders, which lend to people with weaker credit, to lenders that make higher-quality loans.
"The chances are pretty high that the company either goes bankrupt or materially restructures, leaving little value for shareholders," said Bose George, an analyst at Keefe Bruyette & Woods Inc. in New York.
"The business model of non-bank, mortgage lenders is challenging, and may be unstable, because they are so dependent on the willingness of the capital markets to fund operations," he added.
Mary Feder, a spokeswoman for American Home, did not immediately return an e-mail seeking comment. Her telephone mailbox was not accepting messages.
The company also did not return calls on Monday, after it delayed paying a scheduled common stock dividend and announced "major" writedowns.
Many U.S. mortgage providers have struggled with a housing slump that has caused home prices to stall, borrowing costs to rise and defaults to soar. Dozens have tightened lending policies, quit the industry, or gone bankrupt.
American Home has specialized in prime and near-prime loans. It has, however, made many loans that allow borrowers to produce little documentation of income or assets. It recently commanded about 2.5 percent of the U.S. mortgage market.
Margin calls
In its statement, American Home said it was unable to fund $300 million of loans on Monday and did not expect to fund $450 million to $500 million on Tuesday.
It also said it could not borrow from its credit lines, and had "substantial" unpaid margin calls pending to lenders, even after meeting "very significant" calls in the last three weeks.
Prime borrowers catching subprime ills
American Home relies on bank financing to help fund home loans. At the end of March, it had $4.01 billion in "warehouse" lines of credit, and $836.9 million of cash and equivalents.
If it sought bankruptcy protection, American Home would join New Century Financial Corp and several other home lenders in seeking protection from creditors this year. Most of those lenders, however, catered to subprime borrowers, rather than borrowers considered better credit risks.
More traditional lenders such as Countrywide Financial (Charts, Fortune 500) and banks such as Wachovia (Charts, Fortune 500) and Wells Fargo (Charts, Fortune 500) have been hurt by weakness in the housing market caused in part by subprime loans.
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| Posted 7/31/07 4:47 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: we just got horrible news...update in 1st post
bump for update
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| Posted 8/1/07 8:10 AM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: we just got horrible news...update in 1st post
I'm so sorry this is happening to you guys!!
Message edited 8/1/2007 8:26:18 AM.
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| Posted 8/1/07 8:25 AM |
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MrsPowers
So blessed!
Member since 11/06 10348 total posts
Name:
Ivelysse
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Re: we just got horrible news...update in 1st post
That was the first company I thought of when I read your post.
Hang in there. IT is a big field and he will find something. 
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| Posted 8/1/07 9:33 AM |
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MeeshkaMich
LL=Yum
Member since 2/06 5616 total posts
Name:
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Re: we just got horrible news...update in 1st post
I think i know what company you're talking about. i'm so sorry
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| Posted 8/1/07 10:29 AM |
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bikramaddict
mommy-to-be
Member since 8/06 4376 total posts
Name:
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Re: we just got horrible news...update in 1st post
i am so sorry you are going thru this and understand how you feel from first hand experience. Two months after we bought our house, I lost my job and the thought of our savings dwindling away to pay the bills as I searched for a new job made me sick to my stomach. Fortunately, I got a new job very quickly and I'm much happier now. Everything happens for a reason...things will work out.
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| Posted 8/1/07 10:35 AM |
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BabyAvocado
Happy New Year
Member since 5/05 17334 total posts
Name:
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Re: we just got horrible news...update in 1st post
I hope he finds an even better job very soon!
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| Posted 8/1/07 10:46 AM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: we just got horrible news...2nd update
Bump again 
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| Posted 8/1/07 4:45 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: we just got horrible news...Its Official...new update
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| Posted 8/1/07 4:52 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: we just got horrible news...Its Official...new update
I am so sorry Nicole!!
here's a that he finds something else ASAP!!!
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| Posted 8/1/07 4:53 PM |
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pmpkn087
Life is good...
Member since 9/05 18504 total posts
Name:
Stephanie
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Re: we just got horrible news...Its Official...new update
I am so sorry! I hope he finds something REAL soon!
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| Posted 8/1/07 4:59 PM |
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Moehick
Ready for the sun!
Member since 5/05 30339 total posts
Name:
Properly perfect™
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Re: we just got horrible news...Its Official...new update
Oh I am so sorry ....if DH gets out there right away, really pounds the pavement something could come up
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| Posted 8/1/07 5:04 PM |
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SupportACop
Momma's Boy & Lovin' it!!
Member since 5/06 2579 total posts
Name:
C
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Re: we just got horrible news...Its Official...new update
I am so sorry to hear the terrible news. I know 2 people recently laid off this week.
A friend was released from her job, work shortage and
My mother lost her job in Florida, they laid off 300 people her last day is Sept. I am sorry but this bad news seems to be going around.
Good luck with the job hunt and I hope all goes well
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| Posted 8/1/07 9:28 PM |
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sami
So very blessed!! Thank u !!
Member since 8/06 6524 total posts
Name:
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Re: we just got horrible news...Its Official...new update
Everything will work out!
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| Posted 8/1/07 9:35 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: we just got horrible news...it happening...
bump for todays update
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| Posted 8/2/07 11:59 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: we just got horrible news...it happening...
So sorry that you are going through this. I know how hard a lay-off can be but like everyone said above...if he is persistent in his search he will hopefully find something soon. When I was laid off I hit thr ground running and within 21 days scored a new job that was better than the last. I wish the same for your DH.
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| Posted 8/2/07 12:01 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: we just got horrible news..IT HAPPENED
bump again
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| Posted 8/2/07 1:06 PM |
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ODonnell
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Member since 9/05 5983 total posts
Name:
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Re: we just got horrible news..IT HAPPENED
I'm sorry I hope he gets some kind of package and that an even better job comes along soon.
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| Posted 8/2/07 1:10 PM |
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lvdolphins
My Loves!
Member since 5/05 46292 total posts
Name:
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Re: we just got horrible news..IT HAPPENED
I am so sorry!
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| Posted 8/2/07 1:26 PM |
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twobabies
Praying
Member since 7/05 9662 total posts
Name:
Mrs. Honeybee
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Re: we just got horrible news..IT HAPPENED
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| Posted 8/2/07 1:27 PM |
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chikita315
Love
Member since 8/06 7945 total posts
Name:
M-lo
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Re: we just got horrible news..IT HAPPENED
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| Posted 8/2/07 1:31 PM |
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Shroggie
Don't Worry...Be Happy
Member since 5/06 6261 total posts
Name:
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Re: we just got horrible news..IT HAPPENED
hopeflly he'll get paid for his unused accrued time...
everything will work out
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| Posted 8/2/07 2:25 PM |
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AimeeE2006
Time flies!
Member since 1/06 5698 total posts
Name:
Aimee
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Re: we just got horrible news..IT HAPPENED
Everything happens for a reason, right? We moved into our house in October, found out we were pregnant in December and then DH lost his job in January. It was rough for a few months - but we managed! Don't worry just yet!
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| Posted 8/2/07 2:35 PM |
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