Another lender on the ropes

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Good morning again. Another lender is on the ropes, and this is not a sub-prime problem: ‘American Home Mortgage Investment shares sank on Monday after the home loan provider announced ‘major’ writedowns, delayed a dividend, and said lenders were demanding it put up more cash.’

More, from Reuters via CNBC.com: ‘American Home, based in Melville, New York, specializes in prime and near-prime loans. It has, however, made many loans that allow borrowers to produce little documentation. Such loans are often considered riskier. The company recently commanded a roughly 2.5 percent share of the U.S. mortgage market.... ‘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.’

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