Shares in two area lenders hit three-year lows Monday after Wall Street reacted to American Home Mortgage Investment Corp.'s decision to suspend its dividend. The company said some of its lenders want their money back.
Calabasas-based Countrywide Financial Corp. dipped 58 cents, or 1.9 percent Monday to $29.27. This comes less than a week after reporting a 33 percent drop in profit due to growing defaults and waning demand due to a sluggish housing market. Shares in the nation's largest mortgage lender hit a three-year-low of $28.25 during the trading day. In after-hours trading, the stock sunk to $28.97. Shares in Countrywide are down more than 33 percent since February.
Shares in IndyMac Bancorp also hit a three-year low of $20.36 during the trading day, but rebounded to close at $21.69. Still, that was down $1.40 or 6 percent for the day. However, shares of IndyMac gained it all back in after-hours trading, gaining $1.40 to $23.09. Shares in the Pasadena-based lender are down 53 percent since the beginning of the year.
To read this week's story about how Countrywide is combating the real estate slowdown, click here .
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