IndyMac

By
Real Estate Agent with Keller Williams Realty

 

 Just a FYI for all of us!!...It's not over!!.......

Indymac is Closing All Wholesale Regional Operations Centers
 

Dear Indymac Mortgage Banker or Broker,

A few months ago, when WaMu made the decision to exit wholesale lending, we wrote to let you know that we were committed to all of our mortgage professional customers, and that we were working hard to rebuild our business model. Since then, our employees have worked tirelessly and professionally to rebuild our production model and I am very thankful for their service and their unwavering commitment under the most difficult of circumstances. We have successfully transformed ourselves into a competitive Agency and Government lender, and for this we should all be very proud.

However, with the continued very difficult and challenging environment, we are taking steps to continue to protect Indymac's safety and soundness, and have made the difficult decision to cease production of new mortgages, which includes exiting the third-party lending business altogether. Going forward, Indymac will be focused on operating its Southern California retail banking business, offering reverse mortgages through Financial Freedom and operating our home loan servicing and opportunistically growing these groups over time as market conditions permit.

Our decision to exit third-party lending is effective immediately, however, the following timeframes and guidelines are in effect:

  • Effective immediately we will no longer accept any new rate locks.
     
  • Effective immediately we will no longer accept new credit package submissions (either in physical form or through e-FlowSM functionality) for loans that do not have a valid rate lock.
     
  • The last day to fund refinance transactions will be July 31, 2008.
     
  • The last day to fund purchase transactions will be August 15, 2008.

Important Message About Protecting Your Rate Locks:

In order to protect your rate locks, we will require a 1% cash deposit to convert these loans to mandatory delivery. All fees must be received by the end of business on Thursday, July 10th, or your rate locks are subject to cancellation. These fees are fully refundable in the event IMB declines the loan. This fee requirement is all inclusive. You must protect the entire pipeline as part of this process. If you do not submit the required fee for any individual loan as part of this process, all of your rate locks will be subject to cancellation.

Please understand that all of our regional operating centers will be closed. Your regional mortgage production team will be in contact with you to ensure a smooth transition over the coming weeks and facilitate timely processing of your loan pipeline. Additionally, we will keep our Pasadena regional office open for a limited time, until we have cleared out our entire pipeline of loans.

All of these actions are necessary and are designed to keep Indymac Bank as an institution safe and sound; we believe they are the necessary steps we must take to ensure the company's survival during this turbulent period.

On behalf of the roughly 800 employees of Indymac's Mortgage Professionals Group, I want to thank you for your business and support of Indymac Bank over the past 15 years.

Sincerely,

Drew Buccino CMB
CEO Mortgage Professionals Group
Indymac Bank

 

Posted by

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Rainmaker
262,100
Dave Woodson
Dave Woodson - Chesterton, IN
Not the Average Agent

Well, they were mostly useless anyway took forever to get a file through underwriting

Dave

Jul 08, 2008 11:36 PM #1
Rainmaker
199,935
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Director of Property Management

James,

Thanks for the post. This is hardly news for those who have been watching this company. I am surprised the decision was not made sooner.

Jul 08, 2008 11:49 PM #2
Rainmaker
313,005
AJ Heidmann
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

The latest on IndyMac, the bank is taken over by the FDIC.  The following is from CNBC.com:

 

IndyMac Bancorp  has been shut down and its operations will be taken over by the Federal Deposit Insurance Corp., the regulator that oversees the retail bank said.

The Office of Thrift Supervision (OTS) said it shuttered the $32 billion bank, headquartered in Pasadena, Calif., on Friday. A successor institution, IndyMac Federal Bank, will open for business on Monday.

IndyMac becomes the biggest retail bank to fall victim to the U.S. mortgage crisis.

IndyMac, one of the country's biggest mortgage lenders, said earlier this week that it was laying off half its staff and would halt mortgage-origination activity.

"The OTS has determined that [IndyMac] ... is unlikely to be able to meet continued depositors' demands in the normal course of business and is therefore in an unsafe and unsound condition," the OTS said in a statement.

"The immediate cause of the closing was a deposit run that began and continued after the public release of a June 26 letter to the OTS and the FDIC from Senator Charles Schumer of New York [that] ... expressed concerns about IndyMac's viability," the agency said.

In the 11 business days following Schumer's letter, depositors withdrew more than $1.3 billion from their accounts, the OTS said.

"IndyMac's troubles, just like Countrywide's, were caused by practices that began and persisted over the last several years, not by anything that happened in the last few days," the senator said in a statement. "If OTS had done its job as regulator and not let IndyMac's poor and loose lending practices continue, we wouldn't be where we are today. Instead of pointing false fingers of blame, OTS should start doing its job to prevent future IndyMacs."

 

Not surprising, given the company's main products made it susceptible to the current lending crisis through 100% financing and ARM's.

Jul 11, 2008 10:04 PM #3
Rainmaker
421,924
Jean Hanley
Coldwell Banker Kivett Teeters - Hemet, CA
Specializing in Folks Who Want To Buy/Sell Homes

I agree with Dave!!!  Good riddance *did I spell that correctly?*

Jul 11, 2008 10:08 PM #4
Rainmaker
363,365
Lori Mode
Keller Williams Realty - Elk Grove, CA Homes for Sale - Elk Grove, CA
Mode and Durham, Your Elk Grove Real Estate team

James - it will be interesting to see what happens with all of IndyMac's REO properties...we currently have some assigned to us but no listings yet.  We have heard that this portion of IndyMac will still exist on Monday...

Jul 13, 2008 12:39 AM #5
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Rainmaker
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James Muhammad

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