IndyMac Bank Siezed by Federal Regulators
Posted Jul 11, 2008 @ 6:40 pm, Viewed by 1360 Visitors, Read 1397 Times.In one of the largest bank failures ever, IndyMac Bank was seized this afternoon by federal regulators. The Office of Thrift Supervision said it transferred IndyMac's operations to the Federal Deposit Insurance Corporation because it did not think it could meet its depositors' demands. The bank will reopen on Monday morning under government supervision and regulators will begin a complete investigation into the bank's operations.
IndyMac Bank was one of the largest savings and loans in the country with about $32 billion in assets; it specialized in making subprime loans and has been reeling from losses on defaulted mortgages it made during the peak of the housing boom. The failure had been widely expected as its stock price fell to mere pennies a share over the last week and many nervous customers began pulling their funds from the bank. In its announcement, the OTS said "that because of the current situation, IndyMac Bank, is unlikely to be able to meet continued depositors' demands in the normal course of business and is therefore in an unsafe and unsound condition."
The FDIC said it had opened a toll-free phone line for customers of the bank. The number - 866-806-5919 - will operate today from 3 p.m. to 9 p.m. PDT and then daily from 8 a.m. to 8 p.m. thereafter, except Sunday, July 13, when the hours will be 8 a.m. to 6 p.m. Customers also can go to the FDIC's website http://www.fdic.gov/bank/individual/failed/IndyMac.html for more information.
Metro Mortgage Company is a federally regulated Mortgage Banker specializing in residential Florida home loans including Conventional, Jumbo and FHA/VA mortgages. Call us today at 888-617-3674.
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I don't know for sure if they were the largest or not, but they ranked right near the top for reverse mortgages lenders. They bought Financial Freedom a few years back and to my knowledge, it was the only mortgage division in the bank that was left unscathed by the recent cutbacks and job layoffs.
Most of their problem loans were Alt-A's, seconds, HELOCs and piggyback loans. From what I've read, many were evidently of the NINA variety.
I tried to check it out for you this morning, but their website is down or is being redirected to the notice by the FDIC.
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Gulf Coast Associates is a private real estate firm specializing in SW Florida Real Estate. Benjamin Dona is the Broker-Owner. He and his wife Terry, an underwriter with 20 years experience, also own a federally-regulated mortgage banking firm, Metro Mortgage Company.
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Did IndyMac Bank also do the most Reverse Mortgages?