I don’t normally cross-post between 4realz.net and Rain City Guide, but tomorrow I’m having a conversation with the Chief Economist of the National Association of REALTORS that I think will interest many people in the Rain City Guide community. We’re going to be talking about the effect that the recent news associated with the FDIC bailing out IndyMac and the Treasuring providing support to Freddie/Fannie will have on the housing market.
I fully expect this radio show to be interesting, lively and informative and welcome you to join. As with Rain City Radio, there’ll be an associated chat, and I’ll be picking out questions from the chat room. Please consider joining us!
This announcement from IndyMac came via a press release today:
“…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.”
IndyMac is planning on retaining the FHA portion of their reverse mortgage division, Financial Freedom.
This also means more people will be displaced from the mortgage industry.
“Unfortunately, the above actions will necessitate the reduction in our present workforce from approximately 7,200 to roughly 3,400 or so over the next couple of months…”
The press release mentions a couple locations where employees will be retained…no word or mention of the Bellevue office.
IndyMac had a lot of unique products and were no stranger to the subprime and alt-a markets. They had their own automated underwriting system, eMits, that provided “risk based” decisions and pricing. They are reported as being the seventh largest savings and loan in the nation with both retail and wholesale operations.