Indymac Stops All Forward Mortgage Lending, Financial Freedom Survives

image We were all waiting for some type of announcement about Indymac’s future and it looks like we’ve got it.  Today Indymac’s CEO Michael Perry issued a stakeholder letter that said federal regulators have advised that they are no longer “well capitalized” and are requesting they submit a new business plan for review and approval.  Perry said they have agreed on the basic elements of the plan, and the regulators have directed Indymac to start executing it.

Starting today…

  • Indymac will no longer accept any new loan submissions or rate locks in their retail or wholesale forward mortgage lending channels.  Indymac will honor all of their existing rate-locked loans and will continue to fund the loans in the coming weeks.
  • To ensure Indymac maintains prudent operating liquidity they are no longer permitted to accept new brokered deposits or renew or roll over existing ones.
  • Indymac plans to refocus all lending efforts on supporting and building within regulatory constraints Financial Freedom (FHA production only) and the retention activities associated with their servicing portfolio.

The post from Perry goes into more detail and I encourage everyone to take a look at the link below.  Indymac stock closed today at $0.71.

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  • So if IMB goes down, who will buy or merge wth Financial Freedom to help shore up the FDIC’s loss when it takes control and has to liquidate the crappy ALT-A loans?

  • A comment is coming. Before I read the shareholder letter, I emailed Michelle Minier, CEO of FF. Her number 2 called me today to let me know they are still in business and IMB will be concetrating on the FF brand. He said they are working on a lender communication that should be out soon.

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