2008-12-30 — housingwire.com
After IndyMac was seized by regulators this summer, Fannie quickly — and quietly — handed the bank a bill for $1 billion, one source said under condition of anonymity, claiming the failed Pasadena, Calif.-based thrift had violated representations and warranties on various loans sold to the GSE. The IndyMac-originated loans had early payment defaults or were made under fraudulent conditions, according to the source. IndyMac, now under the control of FDIC officials, responded with an offer in kind to settle the repurchase claims for only $100 million, an offer that the GSE did not accept.
Guess the FDIC is having a little trouble moving that Indymac "hot potato".
And who's to say the repurchase claims won't grow?
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Comments:
SteveP at 13:06 2008-12-31 said:
Mike Perry paid the executives that ran wholesale very well. Unfortunately, those exec's were clueless loosers who couldn't recognize a broker packaged fraudulent loan if their life depended on it. They were oblivious to the fact that Indymac wholesale had become the lender of choice for fraud for profit deals due to Indymac Wholesale's complete lack of internal controls in regards to ensuring loan quality. I still can't belive how many 300% LTV, 400% LTV even 1000% LTV loans Indymac wholesale made on boarded up (crack) houses in America's worst ghettos. The loans were so bad, they were obvious to anyone with an IQ over 50 that they would be first payment defaults. With first payment default loans subject to immediate full recourse repurchase, Indymac exec's did not knowingly order out of greed that these obvious first payment default loans be funded, but instead funded them because they were completely clueless to the loans' blantant fraud. Mike Perry made the mistake of assuming his wholesale exec's knew how to spell investment-quality-mortgage, unfortunately Mike's assumption has proved incorrect. PermalinkRonniemortgage at 00:36 2009-01-01 said:
Being a former BDM at IndyMac I can attest to their true exposure to fraud. The reason so many brokers chose IndyMac to send their 'fraud files" was because IMB wanted there systmes to be completely automated. If the broker got an approval on eMITS and they sent the pkg in and red flags werent raised right away, the file went right through without any issues. Most of the time, it was the BDM who caught the fraught and told the broker to kill the loan. I had been shown plenty of loans where I said no way we will do it when I reviewed the loan in the brokers office...... about a month later the loan would show up on my pipeline approved and in one of the funding buckets....... tough position to put the rep in. We are usually fighting for the loans to go through not to kill them especially when it was ctc. The other issue is that IndyMac continued to hire more and more reps and we are all out fighting for our loans. IndyMac hired full teams from New Century, Fremont, MLN..... I mean hired whole teams???? Sales Managers reps the whole nine. How did the management at IndyMac think that hiring full sales teams from failed lenders would be a smart business decision, especially when the mortgage market was waning and the competition for loans was conintuing to escalate. What did they think these new BDMs where going to do?? They had no allegiance to IMB. They were not vested in the company with large amounts of stocks. These new reps where doing anything they could to get a loan done. Just my two cents worth of observations. Permalinkadd a comment | go to forum thread
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