American Home Mortgage Delays Dividend Payments, Reports “Major” Writedowns; Foot Locker Cuts Forecast on Merchandise Changes, Hires Lehman for Strategy Advice

American Home Mortgage Delays Divdend; Shares Plunge 44% in Pre-Market Trading

Late Spring Numbers Bring Chilly Returns According to the S&P/Case-Shiller(R) Home Price Indices

NEW YORK, July 31 /PRNewswire/ — Data through May 2007, released today by Standard & Poor’s for its S&P/Case-Shiller(R) Home Price Indices, the leading measure of U.S. home prices, shows the annual growth rate in prices of existing single family homes across the United States continue their decline, marking their 18th consecutive decline in the growth rate, beginning in December 2005.

The 10-City Composite’s annual decline of 3.4% is at levels not seen since the summer of 1991. The 20-City Composite’s annual decline is 2.8%.

“At a national level, declines in annual home price returns are showing no signs of a slowdown or turnaround,” says Robert J. Shiller, Chief Economist at MacroMarkets LLC. “Year-over-year price returns are continuing to either move deeper into negative territory or experience persistent diminishing returns. If there is any positive news in these numbers, it may be that in both May and April eight of the 20 markets showed positive monthly growth rates. This compares to only one or two of the 20 in the late winter and early spring. We need a few more months of data, however, to determine if this is the beginning of a national turnaround, since the national trend is still at a sharp deceleration.”

Andrew Brenner of MF Global Ltd: Fed Needs to Realize There are Problems Fed Being “Myopic” on Rates

Analysis and Discussion with Tony Crescenzi of Miller Tabak: Contained Inflation Expectations Hurt TIPS; No Credit Crunch Seen; Corporate Borrowing Not Drying Up; Yields Stable; Market Turmoil to SubsideA Good Time to Buy TIPS?

Analysis and Discussion with Meg Browne of Brown Brothers Harriman: Euro/Dollar Rate Differentials Are Narrowing; Dollar vs. Yen, Euro; Rebound in Stocks Should Help Dollar Eventually; Paulson’s Visit to China; Central Banks’ Rate Policies

MELVILLE, N.Y.–(BUSINESS WIRE)–July 31, 2007–American Home Mortgage Investment Corp. (NYSE: AHM) today reported that it is working diligently to determine how best to resolve the liquidity issues that have recently developed with respect to its business. These issues are primarily the result of the unprecedented disruption now occurring generally in the secondary mortgage market.

American Home Mortgage noted that this disruption has fueled concerns in the market regarding credit risk, causing many market participants to suspend the purchase of loans from a variety of originators including American Home. Accordingly, American Home is currently experiencing a hindering of access to its traditional credit facilities. Additionally, American Home’s lenders have initiated margin calls in response to the decline in the collateral value of certain of the Company’s loans and securities held in its portfolio. The Company has received and paid very significant margin calls in the last three weeks and has substantial unpaid margin calls pending. Further pressure on the Company’s liquidity presently exists due to its warehouse lenders effectively reducing, in this environment, their advance rate on new loans made by the Company.

Based on the foregoing, the Company at present is unable to borrow on its credit facilities and was unable to fund its lending obligations yesterday of approximately $300 million. It does not anticipate funding approximately $450 to $500 million today.

We have received word today that as of today ABC’s creditors have called their lines.

ABC WILL NOT BE ABLE TO FUND ANY loans scheduled to fund as of yesterday and will not be able to fund any loans in the near future.

MOVE ANY LOAN YOU HAVE WITH ABC RIGHT AWAY!!!!!

We will give you more info as we get it. ABC is waiting for word on a buy out but to date there is nothing firm and it may not materialize.

Unfortunately, there is nothing we can do in this situation to make things work. If anyone has questions the financial news/and papers are carrying news regarding American Home Mortgage which is ABC’s parent company.

Thanks!

Anmerican Home Mortgage Investment Struggles to Raise Money, Faces Bankruptcy

MELVILLE, N.Y. (AP) — American Home Mortgage Investment Corp. said Tuesday it has run out of cash, raising the specter of bankruptcy for the beleaguered mortgage lender and sending its shares down 90 percent.

The news also reversed a rally on Wall Street and sent stocks into negative territory, as fears of worsening credit conditions deflated a market that had been boosted by strong earnings reports.

The struggling mortgage lender said its financial backers have essentially pulled the plug. The Wall Street banks that lend American Home Mortgage money for home loans — which include firms like UBS AG, Bear Stearns Cos., and JPMorgan Chase & Co. — will not extend the company any more money, and some have demanded back they money they have lent.

Keefe, Bruyette & Woods analyst Bose George said this announcement means American Home Mortgage will probably go bankrupt, or at least be restructured into something leaving very little value for shareholders.

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July 31 2007 - Todays 30 Year, 15 Year Fixed, 3/1 ARM and 5/1 Arm Mortgage Interest Rates remain the same..Interestingly enough, the 10 year bond remains under 5% and is trickling lower.. Core numbers have been declining which NOW has lead to lower mortgage rates.

Analysis and Discussion with Philip Orlando of Federated Investors: Housing Will Be a Drag on Market into 2009