American Home Mortgage Investment Corporation (OTC Pink: AHMIQ) is the 10th largest retail mortgage lender in the United States and is structured as a trust of real estate investments (REIT).
This has filed for bankruptcy. The Company claims that it is focused on net interest income from self-generated loans and mortgage-backed securities, and through its tax-liable subsidiaries, from initial mortgage loans and those serving institutional investors.
Mortgages come from corporate employees as well as through mortgage brokers and are purchased from the correspondent lender and served at the company's service center in Irving, Texas.
The company filed for Chapter 11 bankruptcy protection in federal court of Wilmington Delaware, on August 6, 2007. A week before filing, the company said that many lenders had requested their money back, and that AHM also could not deliver about US $ 800 million in commitments to loans housing, and has dismissed almost ninety percent of its 7,000 employees.
Video American Home Mortgage
Histori
Founded in 1987 in New York City, the company became publicly traded on NASDAQ in September 1999. The company moved its corporate headquarters to Melville, NY in 2000. Since its inception as American Home Mortgage Holdings, Inc., the company is only involved in origination and mortgage services. After acquiring Apex Mortgage Capital in December 2003, the Company became a REIT and renamed American Home Mortgage Investment Corp., the new parent company of American Home Mortgage and moved from NASDAQ to NYSE. The Company has acquired many acquisitions since 1999 including Marina Mortgage from Irvine, CA, Mortgage First Home from Mt Prospect, IL, Columbia National Columbia, MD, and retail branches from Principal Residential Mortgage, Waterfield Financial, Irwin Mortgage and 86 Washington Mutual office. In December 2003, the company moved the list from NASDAQ to NYSE, under the new ticker symbol, AHM.
On July 31, 2007, the company announced that it could no longer fund home loans and could liquidate assets, putting their survival in doubt. The Melville, New York-based real estate investment trust maintains Milestone Advisors and Lazard to help evaluate options and suggest "with respect to additional sources of liquidity including regular liquidation of its assets." The American Home announcement shows how concerns about credit quality and homeowner standards have spread beyond subprime lenders, who lend to people with weaker credit, to lenders who are making higher-quality loans. This announcement caused its share price to drop 90% that day to $ 1.04 on the NYSE. "The odds are high enough that the company went bankrupt or material restructuring, leaving little value for shareholders," said Bose George, an analyst at Keefe, Bruyette & Woods Inc. in New York. American Home specializes in prime and near-prime loans. However, it has made many loans that allow borrowers to generate little income or asset documentation. It recently ordered about 2.5 percent of the US mortgage market.
Maps American Home Mortgage
Financial difficulties
On August 2, 2007, Michael Strauss sent an email to all companies announcing serious financial difficulties of the company
With great sadness I announced today that American Home Mortgage was forced to close. Unfortunately, market conditions both in the secondary mortgage market as well as the national real estate market have deteriorated to the point that our business is no longer viable. What this means for most of our employees is that Friday, August 3, 2007 will be the last day of your work. Detailed information on payroll, benefits and other human resources related materials will be available Friday morning for distribution at the office. I would like to personally thank every individual working for the company for their efforts. It is my privilege to be associated with such an amazing team.
Following Strauss's email, at least one AHM employee has stated that the western AHM division has been purchased by IndyMac Bank, saving the employee's work. In 2008, IndyMac also failed - one of the biggest bank failures in American history. On July 11, 2008, IndyMac Bank was placed into a conservatory by the FDIC and on August 6, 2008, the bank filed for Chapter 11 bankruptcy protection. American Home Mortgage Servicing Inc. sold to Wilbur Ross & amp; Co. LLC, as part of the liquidation of bankruptcy, in November 2007. The entity was formed by an affiliate of WL Ross & Co. LLC in November 2007 for the purpose of acquiring asset services American Home Mortgage Investment Corp., American Home Mortgage Corp. and American Home Mortgage Servicing Inc. in the liquidation of bankruptcy. American Home Mortgage Servicing Inc. changed its name to Homeward Residential Holdings, Inc. in February 2012. In October 2012, Ocwen announced plans to purchase Homeward Residential Holdings, Inc. from WL Ross & amp; Co for $ 750 million. This acquisition was completed on December 27, 2012.
Action Action Law Action Law WARN
On August 8th 2007, Outten & amp; Golden LLP filed suit against American Home Mortgage Corp., American Home Mortgage Acceptance, Inc., American Mortgage Serving Inc., American Home Mortgage Investment Corp., and American Home Mortgage Holding, Inc. which seeks to restore 60 days of wages and benefits to former American Home Mortgage employees whom they deem discontinued on or about August 3, 2007 for violating the Employment Adjustment and Control Law. (WARN Act). On December 14, 2009, the court approved a final settlement of $ 6.5 million for a former American Home Mortgage employee. On May 5, 2013, no money was distributed as "Trustee continues to work to resolve claims and pending litigation that will affect the timing of distribution to AHM's creditors, including WARN Class". Completion of warning actions is distributed in 2014.
External links
- American Home Mortgage Historical SEC Archiving
- Facing a liquidity crisis, American Home Mortgage suspended dividend payouts (July 28, 2007)
- Sign out & amp; Golden LLP American Home Mortgage WARN Suit web page
References
Source of the article : Wikipedia
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