Economy and General Discussion

AHM/ABC Kapputt

From our clearing firm's office this AM;

Subject: Notice: American Brokers Conduit closes it's doors

Our office received a phone call this morning from the Operations Manager of American Brokers Conduit in Las Vegas, Nevada. They have ceased doing business as of this morning. They have no money for wires on loans that have already signed loan docs. Please contact our Rep, Sanja and she will see that your files are returned to you so you can place your loans with other lenders.

This is significant as the first MAJOR A-paper mortgage bank, with significant volume and a huge brokerage base, to go belly up.

American Home can't fund loans [Wa Post]
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/31/AR2007073101033.html

S&P Puts AHM Rankings on Negative Watch [AP]
http://www.forbes.com/feeds/ap/2007/07/31/ap3972488.html

The vultures pounced... competitor account execs are burning their phone lines trying to grab the deals that brokers DID have in the ABC pipelines.

Our Bear Stearns exec chuckled when I noted that his firm was one of AHM's major warehouse line lenders who'd pulled the plug... much to his own pipeline's benefit...

It's getting bloody out there...

Cheers,
Dave Donhoff
Strategic Equity & Mortgage Planner