And The Hits Just Keep on Comin
August 7, 2007
Aegis Wholesale is closing yesterday August 7th, 2007.  I personally consider them an Alt A lender but they have A paper stuff as well.  This is another closing that has basically been very quick with little notice to those of us in the business.  Thankfully I do not have any open transactions with Aegis at this time.  I did have an open transaction with ABConduit, the wholesale division of American Home Mortgage last week when they were closing which of course happened with little notice and left those with open loans scrambling looking for another bank to close the deal. 
What’s difficult about this is that these Alt A lenders have become very important in the last 4 years. A lot of people purchase homes using stated income or no ratio product and with these banks closing, other banks are adjusting their products BIG TIME. I’m not saying they shouldn’t be doing that, I’m just saying that the adjustments will make it so that many will not be able to refi out of their short term fixed loans into new fixed loans, they’ll just have to stay on an adjustable note. It’s really going to be a mess because of the current lack of liquidity out there until some liquidity returns when things settle down.
More: continued here
An Interesting Couple of Days in the Mortgage Industry
August 2, 2007
Well it's been an interesting couple of days in the mortgage industry. American Home Mortgage is slowly dying...looking for someone to purchase it or step in and give it some cash which will probably never happen. They have retained attorneys and consultants to try to find the best way to get through this mess including an orderly liquidation of assets.
This to me tells me that the worst is here for AHM. What makes this such a one two punch for the mortgage industry is that up until this point, it seemed that delinquencies and defaults were coming from the sub prime market. Well AHM is not a sub prime lender, they are primarily an Alt A lender but they have some Prime product too. Now Alt A is basically not quite A paper, but is still considered good it just can't quite fit in the small box of A paper.
The thing is the liquidity problem that AHM has, could ripple through to other Alt A lenders in which case Alt A lenders will be forced to tighten programs and guidelines even more than they are now just as sub prime lenders keep doing. We'll have to wait and see what happens in the next few days and we'll have to wait and see what happens to other Alt A lenders. I have heard that Accredited lender is having trouble too...so who's next?
An Interesting Couple of Days in the Mortgage Industry
August 2, 2007
Well it’s been an interesting couple of days in the mortgage industry. American Home Mortgage is slowly dying…looking for someone to purchase it or step in and give it some cash which will probably never happen. They have retained attorneys and consultants to try to find the best way to get through this mess including an orderly liquidation of assets.
This to me tells me that the worst is here for AHM. What makes this such a one two punch for the mortgage industry is that up until this point, it seemed that delinquencies and defaults were coming from the sub prime market. Well AHM is not a sub prime lender, they are primarily an Alt A lender but they have some Prime product too. Now Alt A is basically not quite A paper, but is still considered good it just can’t quite fit in the small box of A paper.
The thing is the liquidity problem that AHM has, could ripple through to other Alt A lenders in which case Alt A lenders will be forced to tighten programs and guidelines even more than they are now just as sub prime lenders keep doing. We’ll have to wait and see what happens in the next few days and we’ll have to wait and see what happens to other Alt A lenders. I have heard that Accredited lender is having trouble too…so who’s next?
More: continued here
American Home Mortgage Liquidity Trouble
August 2, 2007
"Shares of American Home were down 39 percent, falling in premarket trading to $6.39 from Friday's close of $10.47. Trading was halted for news pending prior to the market open. The shares on Friday hit their lowest level since April 2003."
It seems that American Home Mortgage is facing some liquidity problems due to margin calls on some of their credit lines. Shares fell in premarket trading to the 6 dollar area. Note that this stock was 19 dollars a share just a few weeks ago and 36 dollars a share a year and a half ago.
In fact, look at what one analyst had to say about bankruptcy:
"Bankruptcy is not out of the question," said Matt Howlett, an analyst at Fox-Pitt Kelton Inc. in New York. "It needs to find a partner with alternative funding and hope the market turns around. It's going to be tough."
For you real estate agents with a loan with American Home Mortgage going right now I would double check with your LO that this will not affect your transaction.
American Home Mortgage Liquidity Trouble
August 2, 2007
“Shares of American Home were down 39 percent, falling in premarket trading to $6.39 from Friday′s close of $10.47. Trading was halted for news pending prior to the market open. The shares on Friday hit their lowest level since April 2003.”
It seems that American Home Mortgage is facing some liquidity problems due to margin calls on some of their credit lines. Shares fell in premarket trading to the 6 dollar area. Note that this stock was 19 dollars a share just a few weeks ago and 36 dollars a share a year and a half ago.
In fact, look at what one analyst had to say about bankruptcy:
“Bankruptcy is not out of the question,” said Matt Howlett, an analyst at Fox-Pitt Kelton Inc. in New York. “It needs to find a partner with alternative funding and hope the market turns around. It’s going to be tough.”
For you real estate agents with a loan with American Home Mortgage going right now I would double check with your LO that this will not affect your transaction.
More: continued here
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