IndyMac Job Cuts Impact Financial Freedom

image Last week IndyMac cut 2,403 jobs or 24 percent of its workforce to cope with deteriorating housing and capital markets.  So what does this mean for the successful reverse mortgage subsidiary Financial Freedom?  When I asked Financial Freedom if this included any of their staff here is the response I received:

“While Financial Freedom’s parent, Indymac Bank, shed 24% of its workforce yesterday as a result of severe disruption in the secondary mortgage market, less than 5% of Financial Freedom’s permanent workforce was impacted, largely in administrative roles.  Despite the current negative environment within the mortgage industry generally, we continue to believe that the reverse mortgage industry has a bright future and strong growth potential.  We intend to take advantage of these conditions by continuing to invest in our marketing and operations, and by continuing to grow our sales distribution channels.”

~Financial Freedom

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Now I’m not sure what jobs are classified as “administrative roles”, but a few RMD readers have told me that most of their AE sales support staff was let go.  A few days after this announcement Lender Lead Solutions announced that Financial Freedom’s former regional manager for their eastern wholesale division would be joining them as VP of sales.  Does this mean that other Financial Freedom employees are leaving too?

It’s no secret that IndyMac has been contemplating selling Financial Freedom but I would think a well functioning Financial Freedom would get a better price vs. low on staff Financial Freedom.  I think one RMD reader said it best:

It looks like the Indymacification of Financial Freedom is almost finished.

We wish all those who were laid off best of luck, and I’m sure everyone will land on their feet elsewhere.  Did I mention we have a job board???

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  • Who do you think will buy Financial Freedom, if Indymac is willing to sell? Do you think it is possible for FF to become independent with no financial backer like Indymac? Any answers you have would be greatly appreciated.

  • Financial Freedom has already cut its Operating Centers to the core. Loan officers are struggling to get loans processed and closed. Good qualifed loan officers are jumping ship because they cannot get their loans closed and do not have support. Both of these are key to remaining in business and competitive.
    The only way Financial Freedom can survive is to get rid of the management that created the mess the company currently suffers. If I were a purchaser, I would ask why it takes over 60 days to get a loan closed and why management has not responded.
    Cutting more people, even 5%, will further erode the ability of the company to operate.
    What is going on at Financial Freedom is not all IndyMac’s doing. The key people at Financial Freedom have not responded in years to the coming competitive pressures and worked to make the loan process an efficient,smooth process.

  • The ax has fallen at Financial Freedom and more lives have been dramatically effected.. Processing and service after the sale have ALWAYS been a nightmare at FF. I believe this once great company is headed down hill at an ever increasing speed… Today our Reverse industry is flooded with forward lending types.. Hit and run specialists.. They are flooding the field ranks and unfortunately the home offices as well.. I believe these companies will ultimately fail.. What made FF great was it’s honest concern for the senior.. Very few companies in business today truely understand what it means to place the senior first..

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