Current news for this company:
IndyMac Bancorp - Wholesale/Retail
Update - 2009-03-23: In a press release Friday, March 20th, it was announced that FDIC had completed the sale of IndyMac Federal Bank to newly formed Pasadena, CA based OneWest Bank Group LLC.
OneWest, led by Terry Laughlin, also acquired reverse mortgage unit Financial Freedom. OneWest was formed by the partnership led by private equity firm Dune Capital Management -- a group that includes billionaire George Soros and Dell Inc. founder Michael Dell -- who agreed to buy the failed bank for $13.9 billion. The FDIC "stands to lose $10.7 billion" in the deal.
Although the press release states the newly formed bank "doesn't plan to close any existing branches" in the IndyMac acquisition, we have received reports that a call center in Kansas City was shut down with operations moved to Austin, TX as part of the process. Rumors that as many as 700 employees may be (or have been) laid off were later said to have been exaggerated.
Update - 2009-01-02: As first reported in the Mortgage Lender Implode-O-Meter on 2008-12-26, the FDIC said in a press release today that it had entered into a Letter of Intent to sell Indymac Federal Bank FSB for approximately $13.9 billion to IMB HoldCo LLC, a thrift holding company controlled by IMB Management Holdings LP. IMB HoldCo is owned by a consortium of private equity investors led by Steven T. Mnuchin of Dune Capital Management LP.
In an attachment to the release, FDIC indicates the transaction will be structured as the sale of New IndyMac to IMB HoldCo. New IndyMac is comprised of:
The sale will close in late January or early February, with an estimated cost to the FDIC of between $8.5 to $9.4 billion.
Update - 2008-07-11: (End of day - 3:57 pm PDT) "On, Friday, July 11, 2008, IndyMac Bank, FSB ("IndyMac Bank") was closed by the Office of Thrift Supervision ("OTS") and the Federal Deposit Insurance Corporation ("FDIC") was appointed as Receiver (the "Receiver"). Under the laws of the United States, the Receiver is charged with the duty of winding up the affairs of IndyMac Bank."
To view the entire 2-page letter to Employees, click here (pdf).
The FDIC (click here) has put out a guide to answer consumer, investor and media questions.
Update - 2008-07-11: "The FDIC is in charge" was the verbal announcement ringing through the halls of IndyMac's Pasadena offices. "Everyone show up for work on Monday."
The above information came from an inside source just minutes ago. A formal announcement will be made later today.
Update - 2008-07-10: According to a source that has proved credible in the past, we were told a meeting will be held at IndyMac HQ tomorrow announcing the FDIC will put them into conservatorship.
According to this source, $190 million was pulled in yesterday's run, and $100 million today.
Mr. Perry left for a haircut at 4:00 pm (PDT)
Update - 2008-07-08: Indymac has announced the sale of Retail Lending Group (RLG) to Prospect Mortgage. In a memo received today:
"...Prospect Mortgage will acquire the majority of the retail branches of IndyMac Bank Home Lending. This transaction includes approximately 750 employees and over 60 branch locations. We are excited to have them onboard! The IndyMac branches will adopt the Prospect brand."
You can view the entire announcement here.
In further news, it appears Indymac is now CHARGING brokers to close their locked loans! This in from one such company, complete with a couple of solutions:
"We have just confirmed word that IndyMac will only fund the [co. name deleted] loans that are currently in their pipeline if they receive a 1% on that total pipeline from us. Suffice it to say that we are not in a position to forward more than $100,000 to guarantee that these loans will close. It is our suggestion at this time that you pull your existing loans and send them to other lenders. We would suggest The Money Store, New Line or Taylor Bean & Whitaker."
To view a copy of the Rate Lock Fee Letter, click here. How desparate do you have to be... how broke are you when you demand 1% lock fees? The Implode-O-Meter is looking for a better solution.
Update - 1:30pm (PDT): To quote a 1:00 pm email distributed by Grove Nichols, signed by M. Perry, Indymac is getting out of the mortgage business.
...will necessitate the reduction in our present workforce from approximately 7,200 to roughly 3.400 or so over the next couple of months."
Indymac has announced they will no longer accept any new loan submissions or rate locks in either retail or wholesale, and are closing their "forward" mortgage business.
To read the full text, visit our Forum here.
Update - 11:30am (PDT): Indymac employees have been on hold waiting for a company-wide 1:00pm conference call.
From an email this morning:
"Indy Mac is closing TODAY. The entire Marlton NJ office is apparently being shut down and their other operations offices are closing. All wholesale operations are gone."
As this news rolls across the country, we will keep you updated on developments. One source says as many as 4,000 people will be laid off. It's early in the day, but an official announcement is expected within hours as to the extent of the shutdown.
7:45 am (PDT) - Bloomberg is showing trading halted.
Original Ailing/Watch Listing - 2008-06-30 (6:30pm EST): At 5:45 pm (EST), the following email was sent to customers of Indymac's commercial lending unit, Indymac Commercial Lending Corp.:
An official notice was sent out shortly thereafter.
Referring to today's press release on The IMB Report, Indymac's company web site, an LA Times report refers to "a weekend that saw depositors line up at some of its San Gabriel Valley branches to pull their money, as they reacted to news reports questioning the company's survival."
Indymac's article responds with "while branch traffic is somewhat elevated this morning, it is substantially lower than on Saturday, and we are hopeful that this issue appropriately abates soon..."
A thread for the ICLC shutdown has begun on our Discusssion Forum.
Update - 2008-06-30: After the opening bell, Indymac Bancorp Inc. shares dipped to a morning low of $0.60. IndyMac was one of 12 stocks removed from the Russell 1000, moved to the small-cap Russell 2000 Index per Yahoo Finance.
Meanwhile, the Center for Responsible Lending released a report today titled "IndyMac: What Went Wrong?," in which it "finds substantial evidence that IndyMac routinely made loans with little regard for their customers' ability to repay the loans" according to The Earth Times.
"CRL's investigation provides a body of evidence that discredits the idea that IndyMac and other lenders were victims of overreaching borrowers or rogue mortgage brokers," says Michael Hudson, the report's primary author and a senior investigator at CRL. "IndyMac's current problems appear to be largely the legacy of top-down pressures that valued short-term growth over making responsible lending decisions."
That surely can't have a positive effect. Shares continued to struggle, closing at $.062, down over 23% from the morning's open of $0.81.
Update - 2008-06-26: IndyMac shares are finally down to a mid-day low of $0.94 at one point. One of our sources states, "Pretty much we were told informally that if we did not get a capital infusion we would not make it and that we had a 50/50 chance of obtaining said infusion."
Update - 2008-06-23: Shares of IndyMac have fallen in the past year from $32.54 down to $1.32 at mid-day today. Attorneys calling for Class Action suits are lining up:
Paul Coyne, Business Development MGR issued an email to the troops quoting from a statement by CEO Mike Perry 2008-06-13:
"We don't have any issues with respect to liquidity or funding and we don't have a single warehouse line. We fund ourselves 100% with deposits and FHLB advances and have $4.4 billion of operating liquidity as of today."
Perry went on to suggest the following fixes: "...we clearly need to raise capital, reduce our NPAs, and return to profitability for us to ensure our long-term health."
Update - 2008-02-12: From Yahoo! Finance, Feb. 12, 2008:
CEO Perry takes the blame, kills the dividend, and blamed the "errors" on management. Perry offered to quit if not re-elected as CEO. Now that makes a lot of sense.
Update - 2008-01-31: We have several emails, and confirmation from an inside source IndyMac is closing their Construction-to-Perm (CTP) Lending Division. This info has come in late in the day and we expect the company to confirm the shutdown is effective Feb. 1, 2008 tomorrow... in other words, immediately.
Update - 2008-01-16: After cutting 2403 people and closing 5 Operations Centers, IndyMac has put out a "Q & A" hoping to give Brokers/Bankers some reassurance they are 'still in the picture.' Click here to view the entire document.
Update - 2008-01-15: In a statement released today at 'theimbreport.com', IndyMac announced cuts of another 2403 people. In addition:
"...we have made the decision to close down our regional wholesale mortgage centers in Tampa, Philadelphia, Boston, Columbia and Kansas City (the other operations in Kansas City will remain open) by the end of the first quarter and consolidate these mortgage operations into our 11 other regional centers around the country."
Our Forum has been very busy with opinions, detail, and questions on this subject. Click here to view.
Original Ailing/Watch Listing - 2008-01-09: News isn't readily forthcoming, but adding up the little bits it becomes rather obvious: this company is in trouble. There have been a slew of articles recently, scattered across the business world about the current 'state of things.' Most recently, an article from Reuters casts serious doubt on the future for IndyMac:
One large Net Branch operation has put out the word "not to use IndyMac as they think they will have funding problems."
All the while, we have had tips coming in about layoffs, program/product cuts and new restrictions. Like many other lenders going through a similar contraction in today's market, Subprime is gone and Alt-A has been priced out of market. Killing product is a sure way to drive out the AE's, and just before Christmas one tipster wrote:
And another tip:
"600 ae's are collecting $2500 per month and close 2-5 loans per quarter. The math is simple get rid of them"
In our Premium Newsletter from Dec. 17th, we reported on IndymacBank GrupoMac.
It was only a matter of time. Their continued aggressiveness in the alt-a & option arm market, even after the rest of the industry pulled back, finally bit them in the bEhind. It's annoying competing against one of the most irresponsible lenders since Countrywide. Give away the store with little-to-qualification at a ridiculous rate. They are reaping what they sow and I get to say "I told you so" to my local IMB competitor as I perform my best Gov. Dean Howard guffaw.Are you saying you did refuse to sell those products because they are "irresponsible?" Irresponsible lender huh, I think almost every lender went out of control over the last few years, not just CW or IMB. Sure IMB does do a lot of volume and has probably taken much of your business to this day, but they were not any different to any other lender in terms of products. I love when people come out of the woodworks after the fact and begin to point fingers when all of us were involved in the mortgage debacle some way or another. I'm not saying it is our fault, but we did participate in the ride. Permalink
Please, put down the IndyMac Kool-Aid and get a grip. The difference between IndyMac and the rest of the industry is that the rest of the industry realized when to quit while IndyMac continued to charge ahead with their ridiculous product offerings. It gives me great joy to watch this sorry excuse of an alt-a lender get theirs. I sincerely hope every single Stated option arm they purchased blows up in their face. Also, I'm counting down the days until their stock gets De-Listed. It's trading at a $1.07 today. Uh oh, only 8 cents away from worthlessness! Let's GOOOO IndyMac! How LOOOWW can you GOOOO! (P.S. Capudo34, I sure hope you weren't foolish enough to buy any of their stock. ;) ) PermalinkIt was only a matter of time. Their continued aggressiveness in the alt-a & option arm market, even after the rest of the industry pulled back, finally bit them in the bEhind. It's annoying competing against one of the most irresponsible lenders since Countrywide. Give away the store with little-to-qualification at a ridiculous rate. They are reaping what they sow and I get to say "I told you so" to my local IMB competitor as I perform my best Gov. Dean Howard guffaw.Are you saying you did refuse to sell those products because they are "irresponsible?" Irresponsible lender huh, I think almost every lender went out of control over the last few years, not just CW or IMB. Sure IMB does do a lot of volume and has probably taken much of your business to this day, but they were not any different to any other lender in terms of products. I love when people come out of the woodworks after the fact and begin to point fingers when all of us were involved in the mortgage debacle some way or another. I'm not saying it is our fault, but we did participate in the ride.
SubPrimeTime at 07:02 2008-07-05 said:Today I heard my employer, Indymac Bank, was sold. I don't know the company that purchased it. I'm not sure how the transition will occur or any details other than it's been sold. I assume I will find out more Monday when I go to work. I heard this word of mouth from reliable co-worker. It does not come as a surprise to me. I doubt it's false but I personally have nothing to prove it's official. Based on our recent stock price a number of people could have the potential to purchase it. Just needed to raid the Piggy Bank. Permalink
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Important: This company is on our list of lending operations that have "imploded". However, please note that "imploded" is a somewhat subjective and does not necessarily mean operations are ceased permanently: it can mean bankruptcy filing, temporary but open-ended halting of major operations, or "firesale" acquisition. All information here is provisional, and may contain inaccuracies (especially newer information). If you are planning on doing business with this company or any other one listed on this site, you should inquire with them directly on whether they can still meet your needs. Many are still operating in some capacity.