June 24 average daily rates in Orange County for 30-year fixed loans with one-point fee: Conforming up to 6.078%, Jumbo up to 7.446% and Conforming-Jumbo up to 7.208% (Note: conforming-jumbo rates are for loans from $417,000 to $729,750, while conforming is up to $417,000 -- both types are sold to GSEs. Jumbos here are $730,000 or higher and not sold to GSEs.)
Source: Newspaper Chart Services 
IndyMac expects to lose money for all of 2008
May 12th, 2008, 9:37 am · 2 Comments · posted by Matt Padilla, Register Reporter and Blogger
IndyMac Bancorp, which has operations in Irvine, said Monday it lost $184.2 million in the first quarter as deteriorating credit markets forced it to lower the value of mortgage-backed securities and warned it would not post a profitable quarter in 2008, reports the Associated Press. That compares with a profit of $52.4 million a year earlier.
“With respect to profitability, we do not expect that Indymac will be able to return to overall profitability until the current decline in home prices decelerates,” Chief Executive Michael Perry said in a statement.
Results for the Pasadena-based lender included credit costs and losses of $249 million related to declining values of mortgage-backed securities. The company more than tripled its credit reserves to $2.7 billion from a year earlier.
The company said 24 percent of its losses during the quarter stemmed from severance payments and costs related to office closings. Discontinued businesses, including its homebuilder and home equity lending divisions, accounted for another 22 percent of the period’s losses, IndyMac said.
The lender stopped making new loans via its construction lending division in the fourth quarter, as the housing downturn left home builders in California and Florida stuck with new units they couldn’t sell.
The company originated $9.6 billion in new mortgage loans from January through March, with 88 percent of the volume representing loans that can be sold to government-sponsored mortgage companies.
Perry forecast that the company would post smaller quarterly losses through the end of the year as its restructuring and credit provision costs and losses from discontinued operations decline.
“In this respect, I believe that we have turned a corner and that our business is improving,” Perry said in a statement.
The lender saw higher loan default and foreclosure rates during the quarter as falling housing prices and tighter mortgage lending standards continued to pressure many borrowers.
As a percentage of unpaid principal balance, about 8.3 percent of the loans in IndyMac’s mortgage servicing portfolio were at least 30 days late as of March 31. That’s up from 5.4 percent a year earlier and up from 7.3 percent on Dec. 31, IndyMac said.
To help generate capital, IndyMac said it will stop paying a dividend on preferred shares. The move is expected to save $7.4 million each quarter. IndyMac noted its capital levels exceed regulators’ requirements.
- Downey, WaMu, Indymac plummet in thrift industry rankings
- IndyMac suspends dividend, posts $509 million loss
- Indymac Bancorp cuts 2,403 jobs
- U.S. Senate to air critique of O.C. reverse mortgage company
- IndyMac sees more losses, focuses on liquidity
May 12th, 2008 at 9:39 pm
No, they won’t lose money for ALL of 2008. The bleeding will stop some time around June when they GO OUT OF BUSINESS.
May 29th, 2008 at 10:45 am
Thought it would be a long term career. Unfortunately, I think they lost sight of the roots to their success and are way behind the eight ball now. Service issues continue to be a struggle for them and until that is resolved, originators(banks / brokers) will not come back. The losses will continue as the market slides despite their reserves and anticipations. Offsetting the losses will be new business and that- is the problem that Sr. Mgt has to yet to realize lies in the counsel of the field staff; not in the minds of management that is on salary vs commission.