Amid numerous industry insiders informing me today that American Home Mortgage Investment Corp. will file (or has already filed) for bankrupcty protection — for the record, nothing is showing in PACER yet — the company issued a press release confirming earlier reports that the company’s production operations have shut down:
American Home Mortgage Investment Corp. (NYSE:AHM) today reported that, in light of the liquidity issues resulting from extraordinary disruptions occurring in the secondary mortgage market, the Company has determined to significantly reduce its operating structure as it seeks the most appropriate course of resolution to preserve the value of its remaining assets. American Home has ceased taking mortgage applications and has notified all of its production employees that they will be separated effective tomorrow, August 3, 2007. Accordingly, the Company employee base will be reduced from over 7,000 to approximately 750. The Company currently is maintaining its thrift and servicing businesses. Michael Strauss, American Home’s Chief Executive Officer, stated, “It is with great sadness that American Home has had to take this action which involves so many dedicated employees. The employees affected should understand that this is not a reflection on their efforts or their productivity. Unfortunately, the market conditions in both the secondary mortgage market as well as the national real estate market have deteriorated to the point that we have no realistic alternative.”
I also received a copy of an email (sent today ahead of the press notice), from a now-former account executive at American Brokers Conduit, noting the business unit’s immediate and permanent shut down. I can’t do much from my keyboard but offer my best wishes to those affected by today’s move.