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IndyMac Bank stock has ceased trading on the NASDAQ, and the company has just posted this notice on its blog:
As a result of the above, we have made the difficult decision, effective July 7, 2008, that we will no longer accept any new loan submissions or rate locks in our retail and wholesale forward mortgage lending channels, except for our servicing retention channel. We plan to honor all of our existing rate-locked loans and will continue to fund these loans in the coming weeks. While the managers and employees in these units have worked incredibly hard, these units are not currently profitable due to the continuing erosion of the housing and mortgage markets. At the same time, these operations take up significant balance sheet capacity and ?feed? growth in the servicing asset, an asset we need to shrink given its size relative to our existing capital.
Update: Here’s an email from a bank rep to the field.
Effective immediately, Indymac Bank is closing both our wholesale and retail production channels, and will no longer accept locks on loans.
We intend to honor every existing lock, and you can continue to work with our Phoenix operations center to get your loan closed.
Beyond that, the end of business today is my last with Indymac and I will be physically unable to help you with any transactions.
As we currently stand, Financial Freedom will continue to operate in full and normal capacity.
For those customers who are approved to do reverse mortgage with Financial Freedom, through Indymac, my only suggestion at this point is that you contact Financial Freedom directly.
I will have my thoughts later and we’ll continue to update this breaking story.
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