AHM Stock Reopens; Lender Not Funding

Trading in the stock of American Home Mortgage Investment Corp. finally resumed Tuesday afternoon, but not before plunging almost 90% to just over $1 a share.The publicly traded prime/alternative-A real estate investment trust revealed that it could not fund up to $850 million in loan commitments because its warehouse backers are demanding "substantial unpaid margin calls." AHM also said it has retained Milestone Advisors and Lazard to explore "strategic options." On Monday, MortgageWire broke the news that IndyMac Bancorp of California had talked to AHM about buying its retail network but that attorneys for IndyMac balked at the deal, believing that a possible bankruptcy filing by AHM would pose too many legal hurdles. Based in Melville, N.Y., AHM is the nation's 10th-largest residential funder, according to the Quarterly Data Report. Over the past year its stock has traded as high as $36.40.