Industry News

American Home boosts profits amid rising delinquencies

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American Home Mortgage Investment Corp. -- a mortgage real estate investment trust that originates its own loans -- said third-quarter profits were up 35 percent from the same quarter last year, to $72 million. The Melville, N.Y.-based lender said it achieved earnings of $1.36 per share despite "sharply higher" delinquencies in its $13 billion loan portfolio, and higher costs for credit provisions and repurchases of delinquent, previously sold loans. The value of nonperforming loans doubled from the previous quarter, to $66.9 million, and allowances and reserves for losses associated with those loans were $12.5 million, compared with $6.9 million at the end of the second quarter. These factors were offset by record loan production, net interest income from the lender's portfolio, and record servicing and ancillary fee income, plus lower loan production expenses, the company said. "Our company's third-quarter results were accomplished during a period that was particularly difficult f...