It’s official!
Indymac Bank is closed for wholesale operations! Retail too.
As a result of the above, we have made the difficult decision, effective July 7, 2008, that we will no longer accept any new loan submissions or rate locks in our retail and wholesale forward mortgage lending channels, except for our servicing retention channel. We plan to honor all of our existing rate-locked loans and will continue to fund these loans in the coming weeks. 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. 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.
This is not a good situation.
To get past this financial situation, we need Lenders, we need those lenders to be able to sell their mortgage pools.
Without qualified buyers, nothing can be bought, nothing can be sold. No liquidity – No progress.
Neighborhoods, and the prices for the homes in those neighborhoods will continue to decline until the cash buyer chooses to buy.
We need liquidity.
Google Finance: IMB
BofA next? Is that going to be the “Enron” in the banking world?
Mike,
Very well said. For the markets to work through this mess, we need to be able to keep writing loans.
So what can those of us who have ample access to money (at least money for those with good (680 +) credit, stable verifiable income, and a downpayment) do to help keep things moving in markets that Indymac did a lot in?
They aren’t in my area, but I’ve got access to a lot of states besides for Michigan.
Any thoughts would be welcome.
Tom Vanderwell
(616) 292-7559
From what I read, the Indymac thing is going to get a lot more uglier. They have deep legal issues to face, and the drip-drip of bad news is really going to make it difficult for them to even survive the next few months.
I wonder if BofA is regretting it decision to buy Countrywide now. Between this and the 4 property limit on investment properties it seems like its going to make lending alot tighter. But it eliminates some of the competition for buyers with good credit scores. I think we might start seeing very positive cashflow on properties with the difficulities in getting loans.
Man this sucks,,banks going bellyhoo? Mama said Ya never trust a bank always keep it under the matress . I hate banks cause they rip you off
I’m buying a house that IndyMac foreclosed on. I wonder if this will affect my purchase! Anyone know?
I have a 2nd mortgage with Indymac bank ( im one of those people who made a stupid decision to purchase a home i could not afford, i originally had both mortgages with indymac and they resold one loan and now it’s in the process of foreclosure, what will happen now that indymac is closed?
I probably was about the last person to get a refinance loan from IndyMac on June 30. Taxes and insurance for the year were paid at closing. Yet IndyMac is now insisting on an escrow in addition to the principal and interest payments. Neither taxes nor insurance are again due within the year. They say they would drop this requirement at the first anniversary. Why not drop it now. My mortgage broker had said he had gotten me an escrow free loan. In additin they are not cashing my checks for principle and interest in a timely manner and say that my payments are late. The balance appears to get worse each month as they are not applying my payments. What’s an upright citizen to do, go into foreclosure?
Indymac bank still scamming people! Offered a modification to me and had me hooked for 1 year and 2 months making payments at a reduced amount only to say I did not qualify for the modification because my income was not high enough and now that I am making more money low and behold I dont qualify because I bettered myself and the answer from them is to bad there is nothing we can do to help and we are going to foreclose now! Thanks for nothing Indymac
Sorry to hear the sad stories from IndyMac.
From what I read, the Indymac thing is going to get a lot more uglier. They have deep legal issues to face, and the drip-drip of bad news is really going to make it difficult for them to even survive the next few months.