Major Lender’s Credit Lines Slashed; Stock Takes a Nosedive

American Home Mortgage Investment Company will either have to file for bankruptcy or face restructuring.

Causes serious difficulties for thousands of homeowners.

 

House on fire

This just in.

 

[tag-tec]American Home Mortgage[/tag-tec] Investment Company is in trouble.  Their stocks are down 90 percent and they are running out of cash.

 

This could leave a lot of [tag-cat]homeowners[/tag-cat] who have loans through them in serious difficulty.

 

American Home Mortgage specialized in loans for borrowers who didn’t quite have all the qualifications for a Prime Loan. 

 

The company issued 167 billion of loans in the first quarter of 2007, and was rated as the 20th largest Alt-A lender in 2006.   

 

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