American Home Mortgage Investment Corp. cut its first-quarter and full-year profit forecast by more than 25% Friday after being hit by problems in the secondary market for home loans and mortgage-backed securities.
The company also said that it's stopped offering some types of so-called Alt-A mortgages because of the high cost of delinquencies on those loans.
The warning suggests that problems in the subprime-mortgage business have begun spreading to other parts of the home-loan industry.
And the hits just keep on a-comin.....
