Archive for the ‘Mortgage Bubble’ Category

IndyMac Federal Bank Receives Government Support

Monday, July 14th, 2008

IndyMac will cover 50% of uninsured deposits as IndyMac Federal Bank.

The government is stepping in to support IndyMac. Having just changed its name from IndyMac Bancorp after it was seized Friday. The FDIC has assumed control saying it will cover 50% of uninsured deposits and fully insure all up to $100,000, which is normal.

John Bovenzi, the FDIC COO says there’s probably no bank in the country that has access to greater capital and liquidity than Indymac Federal Bank. He also states the FDIC expects to sell it in the next 90 days.

Because Charles Schumer has loose lips, IndyMac Bancorp became the second biggest federally insured financial company to be taken over by regulators.

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Posted in IndyMac Federal Bank, John Bovenzi, Lenders With Problems 2008, Misc, Mortgage Bubble, Mortgage Implosion, Mortgage Layoffs, Mortgage News, Mortgage Video, bovenzi, cover, deposits, fdic, government support, indymac, indymac bancorp, indymac bank, lips, regulators, schumers, uninsured | Comments Off

Indymac Closes Both Retail and Wholesale Departments

Tuesday, July 8th, 2008

“IndyMac has announced they will no longer accept any new loan submissions or rate locks in either retail or wholesale, and are closing their “forward” mortgage business.”

Citing regulatory pressure to maintain its capital levels, IndyMac is shifting away from and shutting down much of its forward mortgage origination business to focus on its Reverse Mortgage unit, Financial Freedom, according to a letter from chief executive Mike Perry posted on IndyMac’s corporate blog.

IndyMac said as of July 7 it would no longer accept any new loan submissions or rate locks in its retail and wholesale forward mortgage lending channels, except for its servicing retention channel and would cut roughly half its staff of 7,200 over the next couple of months.

The company said it plans to honor all its existing rate locked loans and continue to fund them.

“While the managers and employees in these units have worked incredibly hard, these units are not currently profitable due to the continuing erosion of the housing and mortgage markets,” Mr. Perry said. “At the same time, these operations take up significant balance sheet capacity and ‘feed’ growth in the servicing asset, an asset we need to shrink given its size relative to our existing capital.”


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Posted in CIT, Lenders With Problems 2007, Lenders With Problems 2008, Misc, Mortgage Bubble, Mortgage Implosion, Mortgage News, Reverse Mortgage, Todays Economy, balance sheet, financial freedom, mortgage, mortgage business, mortgage lending, mortgage market, mortgage markets, rate locks, regulatory pressure, wholesale, wholesale mortgage | Comments Off