Entries Tagged 'American Home Mortgage - Blog Posts' ↓
August 5th, 2007 — American Home Mortgage - Blog Posts
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Written by By: Brian Brady,
WorldWideWealthPlanners.com
Published August 05, 2007
Michael Cook did an excellent job explaining the two noteworthy debacles of last week. American Home Mortgage went belly up and Bear Stearns may be downgraded to a negative rating. Thursday afternoon, Angelo Mozilo of Countrywide Financial, did his best Nero impression by muttering two words to analysts; “Don’t Worry“.
Mr. Mozilo may be parroting Bobby Mc Ferrin but the rest of the lenders aren’t. Non-conforming lenders readjusted to what they now call “risk-adjustment†pricing. Basically, at Wall Street’s direction, the large lenders added about a 1% fee to the stated income and no income documentation loan programs. Loans that conform to FNMA or FHLMC guidelines, with verified income and assets, remain at their original pricing. There still are 100% financing programs available to those with good credit and the ability to make the payments.
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August 5th, 2007 — American Home Mortgage - Blog Posts
Written by Realist
Published August 05, 2007
Back in 1987, the movie Wall Street introduced the central meme of the 1980’s and after to the general public: “Greed…. is good.” Christoph Uhlhaas, writing for Scientific American, wondered about that bold and unsubstantiated assertion, claiming that the large number of successful transactions on sites such as eBay refutes the common wisdom regarding “Homo economicus (economic man)” being “a rational, selfish person who single-mindedly strives for maximum profit.”
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August 5th, 2007 — American Home Mortgage - Blog Posts
Posted Aug 4th 2007 7:10PM by
Peter Cohan
Although short selling — the practice of selling borrowed shares with the hope of repaying the loan by buying back the shares at a lower price — goes against the American belief that stocks always go up, I have long been fascinated with it. Short Stories discusses what works, what doesn’t, and what some of the leading lights in shorting stocks think about its opportunities and threats. I describe possible short trades and seek your comments and questions for story ideas. I don’t offer any investment advice and I don’t trade on any of the posts I write.
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August 5th, 2007 — American Home Mortgage - Blog Posts
By Mike Whitney
08/04/07 “
ICH“
This week a third Bear Stearns fund shuttered its doors and stopped investors from withdrawing their money. Bear’s CFO, Sam Molinaro, described the chaos in the credit market as the worst he’d seen in 22 years. At the same time, American Home Mortgage Investment Corp—the 10th-largest
mortgage lender in the U.S. —said that “it can’t pay its creditors, potentially becoming the first big lender outside the subprime mortgage business to go bustâ€. (MarketWatch)
This is big news, mainly because AHM is the first major lender OUTSIDE THE SUBPRIME MORTGAGE BUSINESS to go belly-up. The contagion has now spread through the entire mortgage industry—Alt-A, piggyback, Interest Only, ARMs, Prime, 2-28, Jumbo,—the whole range of loans is now
vulnerable. That means we should expect far more than the estimated 2 million foreclosures by year-end. This is bound to wreak havoc in the secondary market where $1.7 trillion in toxic CDOs have already become the scourge of Wall Street.
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August 5th, 2007 — American Home Mortgage - Blog Posts
Published: August 5, 2007
THE seized-up United States mortgage market claimed more victims both here and abroad last week. The American Home Mortgage Investment Corporation, once a big lender, closed its doors, laying off more than 6,000 workers. In Germany, IKB Deutsche Industry bank received a $4.8 billion bailout from a government-owned group that said it would cover potential subprime losses at the bank.
In a report last week, Charles Peabody, an analyst at Portales Partners, an
independent research firm in New York, characterized the state of the mortgage
market this way: “Investors finally realized that there is such a thing as a bad
mortgage loan. As a matter of fact, there is such a thing as a whole bunch of
bad mortgage loans.â€
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August 3rd, 2007 — American Home Mortgage - Blog Posts
American Home Mortgage Investment Inc. No Time Wasted
Monday, July 30th AHM missed a required $95 million payment to RAIT Investment Trust, a Philadelphia mortgage real estate investment trust.
Thursday, August 2nd AHM announced that they were ceasing most of their operations and would need to terminate employment of 6,250 workers.
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August 3rd, 2007 — American Home Mortgage - Blog Posts
American Home Mortgage to layoff 6,000-plus workers
August 3rd, 2007 - posted by Mat
Well, today is the last day at work for many at American Home Mortgage Investment Corp. in Melville, N.Y. The lender said yesterday it stopped taking mortgage applications and would reduce staff nationwide from 7,000 to 750, starting today.
The company is unable to fund $750 million of mortgages after investment bankers cut off its credit, reports Bloomberg. It’s the first large lender to people with good credit to fail this year.
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