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| American Home Mortgage provides update on liquidity American Home Mortgage Investment Corp. reported that it is working diligently to determine how best to resolve the liquidity issues that have recently developed with respect to its business. These issues are primarily the result of the unprecedented disruption now occurring generally in the secondary mortgage market. American Home Mortgage noted that this disruption has fueled concerns in the market regarding credit risk, causing many market participants to suspend the purchase of loans from a variety of originators including American Home. Accordingly, American Home is currently experiencing a hindering of access to its traditional credit facilities. Additionally, American Home's lenders have initiated margin calls in response to the decline in the collateral value of certain of the company's loans and securities held in its portfolio. American Home Mortgage has received and paid very significant margin calls in the last three weeks and has substantial unpaid margin calls pending. Further pressure on the company's liquidity presently exists due to its warehouse lenders effectively reducing, in this environment, their advance rate on new loans made by American Home. write your comments about the article :: © 2007 Construction News :: home page |