August 06, 2007

Get used to these statements from failed mortgage lenders and homebuilders

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."


Anonymous said...

How'd you like to be the person responsible for placing $125MM of notes at this s-bomb about 30 days before it blew up:

"American Home also said it sold $125 million of convertible trust preferred securities to funds managed by Marathon. The securities pay a dividend of 9.75% a year, and are convertible into the company's common stock at an initial conversion price of $25.57 a share"

Think that person has had a shitty July? Cancel that vacation? Ka-BOOOM!

Anonymous said...

This all seems so scripted!!!

beachcomber said...

Batten down the hatches. This is truly the beginning of sorrows for the real estate industry across the board, eventually dragging all those with any connection to housing down with them. Thank God that I held on to my precious metals.

Anonymous said...

Good riddance employees! Time to find *real* jobs, creating *real* value, for *real* customers. Trust me, you'll feel better when you leave the office at the end of the day. That is, assuming you can find another job!

Anonymous said...

CNBC drew the parallel to Enron when the video showed employees streaming out of their offices with their belongings in cardboard boxes.

The repo men are going to get real busy. Probably the bounty hunters as well.

Ben Dover said...

AHM has been delisted as of this morning.

Pon Raul said...

"This all seems so scripted..." is a thoughtful point. I do find it interesting that the bankruptcy rules changed not that long ago... almost as if they knew what was to come?

Anonymous said...

Homebuilder; "Ah which way does the nail go in"? It's much funnier when done with a spanish accent!


Anonymous said...

pon raul, I thought the same thing...funny how the banker's lobbyist's managed to get that passed right before the SHTF. I am voting for Ron Paul in this election. I think his ideas on our fiat monetary system are prophetic at this point.
I would suggest the American voting public seriously look at this next presidential election and choose WISELY!

k.w. - southern ca. said...

Heard alot here about Ron Paul and other presidential hopefulls who appear to make some sense.

We needed someone like Ron Paul 8 years ago.

The damage is in full-swing now, no new presidential can undo this long-term mess we've created.

However, unless someone else comes along who makes as much sense as Mr. Paul, he's got my vote hands down.

central scrutinizer said...



Anonymous said...

Time to find *real* jobs, creating *real* value, for *real* customers. Trust me, you'll feel better when you leave the office at the end of the day.

Are there any jobs out there like that? Maybe in China.