IndyMac Delivers Coal to Florida Home Owners

IndyMac Bank gets the hell out of Florida – but the question is, is it too late? I’ve got a longer follow up post coming on the subject of loan guidelines that will address this in greater detail; but let’s take a look at the below communication:

Full documentation only
40% down on non-owner properties

If that doesn’t point to the complete lack of investor confidence in the Florida housing market I don’t know what does. I’m just waiting for the same guidelines to hit Las Vegas and inland empire California. People that think the housing market is going to make a early-08 comeback obviously aren’t very good at putting puzzles together. These lending guidelines AREN’T and over-reaction; they’re a necessary adjustment. Watch for more of this to come.

Florida Guideline RestrictionsTransactions securing properties located in the state of Florida are subject to the following restrictions/limitations:

For all loan Programs:

All loans are restricted to Full Documentation

Primary Residence transactions:- The maximum LTV and CLTV otherwise available for the transaction type must be reduced by 5%.- The Borrower’s current primary residence must be sold and closed prior to, or concurrently with Indymac’s funding.- If the to-be-secured property is a single family residence, condominium or planned unit development, it must be located within an established project. An established project is one in which 90% of the total project units have been sold, and the subject property has been previously occupied / owned by someone other than the developer.

Second Home and Investment Property transactions are limited to a maximum 60% LTV / CLTV.

If you have any questions about the contents of this communication, please contact your Indymac Sales Professional or your Regional Operations Center.