FDIC Hopes To Sell IndyMac By December
November 14th, 2008 | by admin Published in Financial Freedom, News, Reverse Mortgage | 6 Comments
National Mortgage News has been the source for updates on the sale of IndyMac, and today it’s reporting that the Federal Deposit Insurance Corp. hopes to complete a deal to sell a majority of IndyMac in December. According to an agency spokesman, "Our intent is to sell as much of it as possible to one buyer".
The FDIC has been using IndyMac to test its loan modification program and according to NMN, it’s expected that continuing the loan modification program will be a pre-condition of sale. An investment banking source familiar with the transaction, added that at least two parties are involved in the latest round of bidding. One of the bidders is a top player in the alt-A market. (is there still an Alt-A market?)
While the FDIC spokesman declined to discuss the bidding process, they did say, "We’ll be conducting bidding later this month." The FDIC placed IndyMac into a conservatorship this past summer and has been attempting to find a buyer ever since.
One of the most valuable assets included in the sale of IndyMac is their reverse mortgage division, Financial Freedom. While the Irvine, California based reverse mortgage lender has seen its production drop significantly over the past year, the company is still the #2 retail reverse mortgage lender and the #1 wholesaler according to data provided by Reverse Market Insight.
FDIC: IndyMac Sale Slated for December (Subscription Required)
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- Lehman Brothers Brings In Financial Freedom Founder To Help With Sale
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November 14th, 2008 at 2:23 pm (#)
Bank of America or Wells Fargo are the two most likely to buy Financial Freedom reverse mortgage portfolio.
November 15th, 2008 at 7:53 am (#)
I doubt it John, there is too much duplication for either of these Lenders. BOA is still digesting CountryWide and Wells just doesn’t fit.
November 15th, 2008 at 3:58 pm (#)
I would have to agree with Mike, I could see someone like Wells or BofA trying to buy their retail business but I think we are going to see another insurance company purchase FF.
November 15th, 2008 at 8:29 pm (#)
MetLife
November 19th, 2008 at 6:08 pm (#)
I’m not sure who’s going to buy. I for one don’t thin it makes a difference. However, what do you think
would will happen to the IndyMac stock ( IDMCQ).
If the word gets out to the Market, we might see a
“Flash in the Pan”
December 1st, 2008 at 3:10 pm (#)
I just returned from an IndyMac branch where I was quietly told that there are several bidders interested in IndyMac; at least two are smaller out-of-state banks and a couple more that are investment companies….but none were a large commercial bank.
An announcement/decision will be made around Christmas.