With stocks down 98% from a year ago, rising loan delinquencies and very little liquidity, Indymac, one of the nations top 10 mortgage lenders is done! It’s closing its wholesale and retail operations as well as halting any new locks. At one time IndyMac was a major player in the “Alt-A” market (loans with risk levels between subprime and prime). From Bloomberg earlier today:
IndyMac, the second-biggest independent U.S. mortgage lender last year behind Countrywide Financial Corp., has lost almost $900 million in the nine months ended in March amid tumbling home prices. The company is focusing on mortgages that can be sold to government-sponsored enterprises like Fannie Mae and Freddie Mac.
If you are in the market for a home mortgage and were working with a mortgage broker, call your broker to ask if the loan was to be placed with IndyMac. You’ll need a new lender!
In other bleak news, it was disclosed today that Fannie and Freddie may be required to raise as much as $85 billion in additional capital. To be fair it’s due to new accounting rules, but still the markets were in turmoil.
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on Jul 7th, 2008 at 8:48 pm
My friend in California is now unemployed due to IndyMac and the latest victim of the mortgage meltdown.
on Jul 8th, 2008 at 7:13 am
Gary,
You bring up a great point. The people (workers) who are being negatively impacted by thins. I think close a million people have been laid off since this whole thing began.
Sorry to hear of your friend!
on Jul 8th, 2008 at 7:15 pm
This really sucks! IMB was one of the few really bright stars. I was doing appraisals for them until recently. I always enjoyed the way that they conducted their business. Very professional!! What a real shame.
on Jul 22nd, 2008 at 6:54 am
I see all these banks are falling apart, it’s been already 267 banks in the past year.
I think now the hard money lending will become the main option people will have.
what do you think?
on Jul 22nd, 2008 at 6:55 am
I feel sorry for all those people that had so much money with indymac and now they can’t take a dollar out.
on Jul 23rd, 2008 at 2:31 am
Indymac one of the nations top 10 mortgage lenders goes down really affects the people who had so much money with them.
Thanks for your information.