Entries from August 2007 ↓
August 7th, 2007 — American Home Mortgage - News Posts
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American Home Foundations Is Undone
Joshua Lipton, 08.06.07, 6:20 PM ET
There has been widespread jitters among investors about the cracks in the credit market. On Monday, all those traders were given a new reason to worry.
American Home Mortgage filed for bankruptcy protection, ending a week of headline-grabbing bad news from what was, just last year, the 10th-largest home lender in the U.S.
Continue reading → American Home Mortgage News Posts
August 7th, 2007 — American Home Mortgage - News Posts
The firms’ shares climb on the belief that they might be allowed to hold more home loans.
From Times Wire Services
August 7, 2007
Shares of Fannie Mae and Freddie Mac, the two largest U.S. home-loan companies, rose on speculation that the companies’ regulator may lift a cap on the amount of home loan assets they can own, helping to ease a funding crunch in the mortgage market.
Fannie Mae shares jumped $5.87, or 10%, to $62.50. Freddie Mac rose $4.30, or 7.7%, to $60.
Falling home prices and a surge in payment defaults have scared investors away from mortgage debt, including bonds and other securities backed by home loans
Continue reading → American Home Mortgage News Posts
August 7th, 2007 — American Home Mortgage - News Posts
Mortgage problems hit Houston market
By PURVA PATEL and NANCY SARNOFF
Houston Chronicle
One of the nation’s largest mortgage lenders, Houston-based Aegis Mortgage Corp., stopped taking new loans Monday, amid a day of news that signaled tougher days ahead for lenders and homebuyers.
"It’s a bloodbath out there," said Mark Cady, senior vice president of Market Street Mortgage in Houston.
The announcement came on the same day New York-based American Home Mortgage Investment Corp. filed for bankruptcy protection and Cleveland-based National City Corp. also stopped taking applications for new loans in its wholesale division.
Continue reading → American Home Mortgage News Posts
August 7th, 2007 — American Home Mortgage - News Posts
By Ambrose Evans-Pritchard
Last Updated: 1:46am BST 07/08/2007
American Home Mortgage has filed for bankruptcy in the latest sign the US housing crisis is spreading from sub-prime mortgages to the higher grades of credit risk.
The collapse of America’s 10th biggest home lender came amid fresh gyrations on global bond and stock markets yesterday, and growing questions over the exposure of European banks and insurers to the US property slump.
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August 7th, 2007 — American Home Mortgage - Lawsuits, American Home Mortgage - Press Releases
Attorney Advertising. The law firm of Milberg Weiss LLP announces its investigation of American Home Mortgage Investment Corp. (NYSE: AHM) (”American Home Mortgage ” or the “Company”), certain of American Home Mortgage’s officers and directors, as well as Citigroup Global Markets Inc., the underwriter of the company’s May 4, 2007 common stock offering, for allegedly issuing materially false and misleading statements and potentially violating federal securities laws, as well as certain other duties.
American Home Mortgage is a real estate investment trust (REIT) which has engaged in the investment and origination of residential mortgage loans in the United States. The Company primarily originated and sold securitized adjustable-rate mortgage loans, as well as engaged in the sale of mortgage loans to institutional investors and the servicing of mortgage loans owned by others.
Continue reading → American Home Mortgage Lawsuits American Home Mortgage Press Releases
August 6th, 2007 — American Home Mortgage - News Posts, American Home Mortgage Videos, Chapter 11 Bankruptcy
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Bloomberg-Clip - (BLOOM-Clip)
Aug. 06, 2007. 08:00 AM EST
American Home Mortgage Files For Bankruptcy; Berkshire Doubled Investment in Mortgage-Backed Securities; Berkshire’s Cash Increases by $1 Billion to $47 Billion in 2Q; profit Jumps 33% on Insurance and Investment
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American Home Mortgage News Posts American Home Mortgage Videos Chapter 11 Bankruptcy
August 6th, 2007 — American Home Mortgage - News Posts, American Home Mortgage Videos, Chapter 11 Bankruptcy
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Bloomberg-Clip - (BLOOM-Clip)
Aug. 06, 2007. 09:00 AM EST
Prices Fell in Secondary Market Where Traders Trade Mortgages, Since Bond Investors Didn’t Want Anything to Do With American Mortgage; Plan for Reorganizing Would Be Too Complicated at This Point for American Home
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American Home Mortgage News Posts American Home Mortgage Videos Chapter 11 Bankruptcy
August 6th, 2007 — American Home Mortgage - News Posts, Chapter 11 Bankruptcy
Receives $50 Million Debtor-in-Possession Financing to Facilitate
the Chapter 11 Process
Engages Kroll Zolfo Cooper, Highly Experienced Management
Professionals In Bankruptcy Situations
MELVILLE, N.Y.–(BUSINESS WIRE)–Aug. 6, 2007–American Home Mortgage Investment Corp. (NYSE: AHM) today reported that its Board of Directors, 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, has authorized management to seek protection for the Company through the bankruptcy process in order to best preserve the value of the Company’s assets. Accordingly, American Home Mortgage Investment Corp., together with certain of its subsidiaries, has today filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Under the protection of Chapter 11, American Home will have the time and opportunity to achieve the best possible value for the creditors of its mortgage based assets and related operations, as well as an orderly wind down of the Company.
American Home ceased taking mortgage applications on August 1, 2007 and separated all production employees on August 3, 2007. The Company is currently maintaining its thrift and servicing businesses.
Continue reading → American Home Mortgage News Posts Chapter 11 Bankruptcy
August 6th, 2007 — American Home Mortgage - Lawsuits
PHILADELPHIA, Aug. 1, 2007 (PRIME NEWSWIRE) — Law Offices Bernard M. Gross, P.C. today announced that a class action lawsuit has been commenced in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of the securities of RAIT Financial Trust (”RAIT” or the “Company”) (NYSE:RAS) between January 10, 2007 and July 31, 2007, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”). RAIT had an offering of 10 million shares of its common stock on January 10, 2007.
If you wish to serve as lead plaintiff, you must move the Court no later than September 30, 2007. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Deborah R. Gross or Susan R. Gross at 866-561-3600 or 215-561-3600 or via email at debbie@bernardmgross.com or susang@bernardmgross.com. If you are a member of this class, please contact the Law Offices Bernard M. Gross to view a copy of the complaint as filed or to join this action. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Continue reading → American Home Mortgage Lawsuits
August 6th, 2007 — American Home Mortgage - Lawsuits
NEW YORK, Aug. 2, 2007 (PRIME NEWSWIRE) — The law firm of Seeger Weiss LLP announces that it filed a class action lawsuit today in the United States District Court for Eastern District of New York on behalf of purchasers of American Home Mortgage Investment Corporation (”AHM” or “Company”) (NYSE:AHM) common stock in the open market between July 26, 2006 and July 27, 2007, inclusive (the “Class Period”). The complaint seeks remedies for the class under the Securities Exchange Act of 1934 (the “Exchange Act”).
The complaint charges that defendants AHM, Michael Strauss and Stephen A. Hozie, violated Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period. AHM is a real estate investment trust (REIT), which engages in the investment and origination of residential mortgage loans in the United States. The Company primarily originates and sells securitized adjustable-rate mortgage loans, as well as engages in the sale of mortgage loans to institutional investors and servicing mortgage loans owned by others.
According to the complaint, during the Class Period, defendants disseminated or approved the materially false and misleading statements which they knew or deliberately disregarded were misleading in that they contained misrepresentations and failed to disclose material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.
On June 28, 2007, American Home Mortgage issued a press release announcing that it will take “substantial charges for credit-related expenses in the second quarter.” The Company reported that the increase in losses was related to its practice of extending a three month timely payment warranty that the Company granted to loan buyers who purchased stated income loans. In response to this announcement, the price of American Home Mortgage stock declined from $20.91 per share to $18.38 per share on extremely heavy trading volume. Then, on July 27, 2007, after the close of the market, American Home Mortgage issued a press release announcing that its Board of Directors had determined to delay paying its dividend. In response to this announcement, on July 30, 2007, the NYSE halted trading in American Home Mortgage stock before the market opened. After the stock reopened for trading, it traded down even further, closing at less than $1.50 per share on July 31 and August 1, 2007.
Seeger Weiss is a New York based law firm that is active in major complex litigations and class actions pending in federal and state courts throughout the United States. Seeger Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers and others and has recovered millions of dollars for clients and class members.
If you are a member of the class described above, you may, no later than 60 days from July 31, move before the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Seeger Weiss LLP, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact us:
Christopher A. Seeger, Esq.
Eric T. Chaffin, Esq.
Seeger Weiss LLP
One William Street
New York, New York 10004
E-Mail: cseeger@seegerweiss.com
echaffin@seegerweiss.com
Tel.: (212) 584-0700
Toll Free: (877) 541-3273
www.seegerweiss.com
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca
CONTACT: Seeger Weiss LLP
(877) 541-3273
American Home Mortgage Lawsuits
