(Adds analyst comment, New York Stock Exchange request)
NEW YORK, July 19 American Home Mortgage
Investment Corp. AHM.N shares fell more than 20 percent
Thursday on a rumor that a Wall Street investment firm had
withdrawn a credit facility, analysts said.
But analysts who had spoken with the company's chief
financial officer said the company denied the rumor.
The Melville, New York-based real estate investment trust,
which makes home loans, did not immediately return a call
The company also did not comment to the New York Stock
Exchange. In a statement on its Web site, the NYSE said it had
requested American Home Mortgage issue a statement indicating
whether there were any corporate developments that might
explain the share price move.
Steven DeLaney, a managing director at JMP Securities in
Atlanta, who spoke with the real estate investment trust's
chief financial officer, said American Home assured him the
rumor was false.
"The company had assured us that no credit facility has
been pulled," DeLaney said.
Bose George, an analyst at Keefe, Bruyette & Woods in New
York, said the company's CFO also assured him the rumors were
"He denied it pretty flatly, and said there is no liquidity
issue," George said.
American Home specializes in prime and "near prime" loans.
It has made many loans that allow borrowers to produce little
documentation, which can be considered riskier.
Mortgage lenders have broadly faced earnings pressure as
delinquencies and defaults have ticked higher.
American Home's shares fell $2.83, or 20.82 percent, to
close at $10.76 on the New York Stock Exchange.
(Reporting by Jonathan Stempel, Dan Wilchins, and Mark