Yesterday Financial Freedom alerted their account executives that they would be suspending their jumbo Cash Account product. According to the emails I’ve seen Financial Freedom had budgeted $600 million in cash account production for 2008 and they have already originated $700 million YTD. With the current mortgage environment and Indymacs liquidity problems they company isn’t able to put anymore of the loans onto their balance sheet.
As of right now I’m being told that FF will be accepting applications for the Cash Account until 6/30 and they must be closed by 7/31. These dates could change a bit but I will be sure to update everyone once I get the official announcement from Financial Freedom which should be out in the next day or so.
I’m being told Financial Freedom retail will still be able to originate the product. I’ve contacted management at FF and I’ve yet to receive any response about this. Thanks to all of the other Financial Freedom employees that are keeping me updated.