Archive for the 'IndyMac' Category
September 21st, 2009, 5:53 pm by Mathew Padilla
The Federal Deposit Insurance Corp.’s Inspector General released a report today on the regulator’s handling of failed IndyMac Bank, which specialized in stated-income loans to folks with decent credit scores.
The FDIC noted issues at IndyMac as early as 2002, but did not stop the bank’s risk taking, the report says.
“It was not until August 2007 that the FDIC began to understand the implications that the historic collapse of the credit market and housing slowdown could have on IMB and took additional actions to evaluate IMB’s viability,” the report says.
IndyMac’s failure is expected to cost the FDIC’s insurance fund $10.7 billion.
Critics of regulators have long said their failure to recognize and deal with the housing bubble and related loose lending is a key reason why the entire financial system nearly collapsed.
According to the Inspector General’s report, from 2001 to 2003, the FDIC worked with IndyMac’s main regulator, the Office of Thrift Supervision, and became concerned about IndyMac’s business model and its exposure to a potential housing bubble (they still weren’t sure if a bubble actually existed).
FDIC employees spent 8,096 hours in a “back-up capacity” at Indymac, the report says. Yet the FDIC failed to do much about their concerns, accept give the bank a higher risk ranking than OTS wanted.
In January 2002, examiners noted that “non-recession-tested lending programs such as subprime lending and (high loan-to-value) lending may pose the biggest threat to consumer loan portfolio credit quality in a slowing economy.”
The report says FDIC examiners also noted:
- “consumers’ ever-increasing debt load, the expansion of adjustable rate mortgages, and a potential housing bubble;
- “pricing and modeling charge-off risk with respect to the originate-to-sell model of the mortgage business.”
Despite these risks, the FDIC switched to relying on examinations from the OTS from 2004 to mid 2007, a period in which Indymac “continued to rely heavily on volatile funding sources such as brokered deposits and (Federal Home Loan Bank) advances to fund its growth.”
During that period, FDIC had a turnover problem, with five different case managers handling IndyMac.
As has been previously reported, the Office of Thrift Supervision allowed IndyMac to backdate a capital infusion to the first quarter of 2008, even though it was made in the second quarter. Here’s more from the report (bold added):
Further, although there was a noticeable deterioration in IMB in the fourth quarter of 2007 and into 2008, the FDIC did not suggest that OTS take, or itself take, any enforcement action against IMB. Notably, the FDIC’s analysis and conclusions of IMB’s first quarter 2008 financial data were affected by a capital contribution adjustment that was permitted by OTS. Had the capital contribution not been reflected in the first quarter data:
(1) IMB would have been required to request a waiver from the FDIC to continue to receive brokered deposits and
(2) the value of assets pledged as collateral to secure FHLB advances would have been reduced, thereby limiting the amount of FHLB advances and possibly the cost of IMB’s failure.
The report paints FDIC officials as aware of risks but not doing enough about them. That’s a $10 billion mistake.
So far the only banking regulator the Obama administration has suggested dumping is the OTS. But Senator Christopher Dodd (D-Connecticut) reportedly wants to merge four bank agencies into one super-regulator.
If the super regulator turns out to be the FDIC let’s hope they act quicker next time.
More from this blog..
Posted in: Company Watch • FDIC • IndyMac • Regulation | 4 Comments »
April 22nd, 2009, 2:21 pm by Jeff Collins
 Some defunct Orange County lenders accounted for the highest proportion of bad loans generated during one of the most notorius periods for bad-loan originations, DataQuick reported today.
In its latest report on defaults and foreclosures, the real estate data firm noted that the highest percentage of defaults occurred from August through November 2006 — a period DataQuick called “a particularly toxic period” for issuing home loans.
Nine percent of the loans issued during that period ended up in default, DataQuick said. Then, it added:
“The lending institutions with the highest default rates for loans originated in August to November 2006 include ResMAE Mortgage (69.9 percent of loans resulting in a default notice), Master Financial (64.6 percent) and Ownit Mortgage Solutions (63.6 percent).”
All three were Orange County subprime lenders before they bit the dust.
Other lenders’ default rates for loans originated in this period: IndyMac, 18.9 percent; World Savings, 8 percent; Countrywide, 7.7 percent; Washington Mutual, 6.3 percent; Wells Fargo, 3.4 percent; and Citibank and Bank of America, less than 1 percent apiece.
In addition, DataQuick reported:
- Of the 3.7 million home loans made in 2004, less than 1 percent have since resulted in a lender filing a default notice.
- Of the 3.7 million loans originated in 2005, 4.9 percent have triggered a default notice so far.
- Of the 3 million in 2006, 8.5 percent have so far resulted in default.
- Of the 2.1 million loans made in 2007, it’s 4.6 percent – “a percentage that’s likelyto rise significantly during the rest of this year.”
DataQuick said the figures suggest that 2006 was “a period where underwriting criteria were particularly lax.” It quoted company President John Walsh as saying:
“The nastiest batch of California home loans appears to have been made in mid- to late 2006, and the foreclosure process is working its way through those. Back then, different risk factors were getting piled on top of each other. Adjustable-rate mortgages can be good loans. So can low-down-payment loans, interest-only loans, stated-income loans, etc. But if you combine these elements into one loan, it’s toxic.”
The figures were part of a DataQuick news release reporting that both California and Orange County recorded a record number of default notices during the first three months of this year.
Statewide, 135,431 default notices were issued during the January-to-March period; O.C. accounted for 8,427 of those. Both figures were up 19 percent from the year before. For more on O.C. foreclosure and default figures in March, CLICK HERE!
To read the Register’s award-winning analysis of subprime lending, CLICK HERE!
Read more …
Posted in: Bad debt • Bank failures • Bank of America • Citigroup • Countrywide • Defaults & Foreclosures • IndyMac • Loan underwriting • Washington Mutual • dataquick • dataquick • delinquencies • distressed homes • distressed properties • foreclosure • foreclosures • IndyMac • liar loans • notices of default • Orange County • record • REO • subprime | 4 Comments »
March 20th, 2009, 3:03 pm by Mathew Padilla
The Federal Deposit Insurance Corp. said late Thursday it will not pay any more money to people who had deposits with IndyMac Bank above the FDIC insurance limits in effect when the bank was seized last year.
For money above insurance limits, the FDIC paid 50 cents on the dollar.
The FDIC sold all remaining deposits and branches as well as most assets of IndyMac to newly formed OneWest Bank in Pasadena. The regulator expects to lose $10.7 billion related to IndyMac.
Fran Quittel is one of the IndyMac depositors who had money above the insurance limits. The Emeryville resident had $133,000 in two business accounts with IndyMac. She previously lived in Pasadena, where IndyMac was based.
Quittel, who lost more than $15,000, is upset with the FDIC for several reasons. First she was under the impression that standard insurance was $100,000 per account, not per person, at each bank. (The standard limit has since been raised to $250,000). She said FDIC limits should be clearer and more prominent.
Limits are listed and explained on the FDIC’s Web site. FDIC Spokesman David Barr told me in an e-mail, “The FDIC dollar amount is on our sticker, which is on the front door of every bank we insure and at every teller station in America. The limit has been $100,000 since 1980.”
Quittel also questions how the FDIC decided on a 50 percent settlement for uninsured deposits. Barr previously did an interview with Bankrate.com in which he said:
The 50 cents was based on a very conservative estimate of what we feel we can get for the assets. But it’s way too early to determine how much more, if any, they’ll get above the 50 cents.
And, in an e-mail to me, he wrote:
“In the rare instances that we provide such a payment, it is typically 50%. We try and not provide too much in the event we suffer greater losses. We don’t want to have to ask for money back. Remember, this is an advance payment provided before the receivership has gotten a single dollar to payout.”
Quittel’s most troubling complaint, however, is that federal regulators bungled, perhaps criminally, the handling of IndyMac. However, such issues have more to do with the Office of Thrift Supervision than with the FDIC.
In February, the Treasury Department’s Inspector General released a report critical of OTS, saying it allowed IndyMac to engage in reckless lending. The Inspector General said OTS “allowed IndyMac to record an $18 million capital infusion from the holding company, received in May 2008, as though it was available on March 31, 2008. This allowed IndyMac to inappropriately report that it was at the well capitalized level as of March 31.”
To be fair to the FDIC, if the OTS had not allowed the backdating of that capital infusion, IndyMac would have reported inadequate capital for the first quarter of 2008. That would have alerted the FDIC earlier that it needed to act.
The latest banking/lending stories …
Posted in: Company Watch • IndyMac • Meltdown | 8 Comments »
March 19th, 2009, 7:09 pm by Mathew Padilla
The Federal Deposit Insurance Corporation said late Thursday it closed the sale of the deposits and branches of IndyMac Bank, which it seized last year, to newly formed OneWest Bank in Pasadena.
OneWest is buying $6.4 billion in deposits and $20.7 billion in assets at a $4.7 billion discount. Total cost of the takeover to the Federal Deposit Insurance Fund is estimated at $10.7 billion.
Here’s more from the FDIC:
OneWest will assume all deposits of IndyMac Federal. IMB HoldCo signed a letter of intent with the FDIC on December 31, 2008, to purchase IndyMac Federal.
The 33 branches of IndyMac Federal will reopen as branches of OneWest tomorrow. Depositors of IndyMac Federal will automatically become depositors of OneWest. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of January 31, 2009, IndyMac Federal had total assets of $23.5 billion and total deposits of $6.4 billion. OneWest has agreed to purchase all deposits and approximately $20.7 billion in assets at a discount of $4.7 billion. The FDIC will retain the remaining assets for later disposition.
FDIC and OneWest have entered into a loss share transaction on the single family residential portfolio. Under terms of the loss share agreement, OneWest will continue the FDIC’s existing loan modification program.
Customers who have questions about the transaction can call the FDIC toll-free at 866-806-5919. The phone number will be operational this evening until 9:00 p.m. Pacific Time; on Saturday from 9:00 a.m. to 6:00 p.m. Pacific Time; on Sunday from noon until 6:00 p.m. Pacific Time; and thereafter from 9:00 a.m. to 5:00 p.m. Pacific Time. Interested parties can also visit the FDIC’s website at http://www.fdic.gov/bank/individual/failed/IndyMac.html.
IndyMac Federal sustained losses of $2.6 billion in the fourth quarter 2008 due to deterioration in the real estate market. The total estimated loss to the Deposit Insurance Fund is $10.7 billion. No further payments on receivership claims for uninsured funds from former IndyMac Bank, F.S.B. will be distributed as a result of this transaction.
The latest banking/lending stories …
Posted in: Bank woes • Company Watch • FDIC • IndyMac • Meltdown | 3 Comments »
January 2nd, 2009, 5:10 pm by John Gittelsohn
IMB Management Holdings LP, a limited partnership, and a group of allied investors signed a letter of agreement to take over IndyMac Bank, the Federal Deposit Insurance Corporation said today.
Terms of the deal were not released, but the Associated Press reported it will be worth $13.9 billion. The transaction is expected to close in late January or early February, at which time full details of the agreement will be provided, the FDIC said.
The FDIC took over Pasadena-based IndyMac in July when the bank fell victim to bad mortgage loans. The FDIC estimated that it will cost between $8.5 billion and $9.4 billion from its insurance fund to resolve IndyMac’s troubled assets.
To see the Associated Press report, CLICK HERE.
To see the FDIC announcement, CLICK HERE.
Related stories …
Posted in: Bank woes • IndyMac • Thrift news • Uncategorized • FDIC | 2 Comments »
December 28th, 2008, 2:54 pm by Mathew Padilla
A consortium of investors are set to buy all that’s left of failed IndyMac Bank, reports The New York Times in its online section DealBook.
Citing anonymous sources close to the deal, the Times said the buyers are private equity firms J.C. Flowers & Company and Dune Capital Management as well as hedge fund firm Paulson & Company.
I previously blogged that Dune Capital, formed by former Goldman Sachs partners Steven Mnuchin and Daniel Niedich, was the buyer, based on a report on the Mortgage Lender Implode-O-Meter site. Read that post HERE and read the Times story HERE.
J.C. Flowers is also led by a former Goldman partner, J. Christopher Flowers. Paulson & Company, led by John Paulson, has made billions by betting against risky home loans.
It will be interesting to see how many delinquent IndyMac loans these buyers modify, if the deal goes through. I imagine that is a point being pushed hard in negotiations by the FDIC.
Posted in: Company Watch • IndyMac | 1 Comment »
December 26th, 2008, 2:30 pm by Mathew Padilla
A private equity firm is poised to buy what’s left of IndyMac Bank, one of the largest banks to fail this year, reports the Web site Mortgage Lender Implode-O-Meter.
Evan Wagner, a spokesman for the bank, declined to comment and said the FDIC, which controls IndyMac, plans to announce a buyer before the end of the year.
The entire operation, including IndyMac’s Irvine-based reverse mortgage lender Financial Freedom, are part of the deal, according to Implode.
Here’s more:
The winner is New York–based Dune Capital Management, founded by two ex-Goldman partners. Dune’s Co-CEO Dan Niedich was known as the “dean” at Goldman of investing the firm’s capital in real estate. Chairman and Co-CEO Steve Mnuchin comes from a family of Goldman bankers. The firm was seeded in 2004 by legendary hedge fund trader George Soros.
A sale price for the transaction could not be determined.
Dune Capital has recently been cleared for a bank charter. In principle this means the firm could qualify for TARP funds. The Treasury began issuing special expedited bank charters to private equity groups on November 21st, 2008.
***
Executives inside of IndyMac’s Pasadena office where told Tuesday a deal to sell the whole bank had been made, final contracts were being negotiated, and an announcement would come in the next couple of days. Assets for sale include: $6 billion in retail deposits, 33 California branches, a near-$200 billion loan servicing portfolio and platform, $16 billion in mortgage loans, and its reverse mortgage company Financial Freedom that holds a mortgage book worth $22 billion.
Read the full story by Teri Buhl HERE. The article quotes an anonymous insider at IndyMac who said the deal is still “fluid.”
And in other news…
Posted in: Company Watch • IndyMac • Meltdown | 6 Comments »
December 23rd, 2008, 4:27 pm by Mathew Padilla
This one is all over the Web: The Office of Thrift Supervision allowed IndyMac Bank in Pasadena to backdate a capital infusion so it would avoid scrutiny by rival regulator the FDIC, says the Treasury Department’s independent investigator. Two months later Indymac failed. The New York Times has a good story on it HERE.
John Reich, OTS director, said the $18 million capital infusion was “a relatively small factor” in the collapse of IndyMac, according to the Times. However, Reich removed Darrel Dochow, who allegedly approved the backdating, from his job as the agency’s western director pending the results of a separate inquiry. The Times has some interesting background on Dochow.
Perhaps this revelation undermines Rush Limbaugh’s theory that Sen. Chuck Schumer (D-NY) deliberately started the run on IndyMac to create a financial panic, which would help the Democrats in November. It appears there was a serious capital shortfall at IndyMac, which should have been brought to the FDIC’s attention, long before Schumer spoke up.
Posted in: IndyMac | 13 Comments »
December 6th, 2008, 3:00 am by Mathew Padilla
The Washington Post, in a recent story, wrote that when Countrywide Financial felt pressured by a federal agency charged with overseeing it, executives simply switched to a more business friendly regulator: the Office of Thrift Supervision (OTS).
The Post points out, I think quite rightly, that the OTS has a poor record of late. Three of the largest thrifts it oversaw have failed this year: Downey Savings in Newport Beach, IndyMac Bank in Pasadena and Seattle’s Washington Mutual, the largest bank in U.S. history to go bust.
 Angelo Mozilo file photo by Bloomberg I have an anecdote to share on this issue. While working on the book “Chain of Blame,” I interviewed in February Robert “Bob” Gnaizda, general counsel of consumer group the Greenlining Institute, and he described a meeting with former Countrywide CEO Angelo Mozilo. To hear Gnaizda tell it, he wanted to talk about banks setting voluntary standards for home lending, especially in regards to giving consumers adjustable-rate loans.
But Mozilo in the December 2006 meeting with Gnaizda dismissed the idea that adjustables might be a problem. Instead, he wanted to talk about switching his regulator from the Office of the Comptroller of the Currency to OTS.
Here’s Gnaizda’s recollection:
Mozilo tried to force me to support that. Greenlining was the only one to oppose it. In front of everyone he said, “I know you are not going to oppose us, but I will not accept neutrality. I insist you directly support us.”
I said nothing. He said it twice.
When he left I told his people I would not (support the change). … I thought OTS was too weak and understaffed to administer Countrywide.
Well now Countrywide is a unit of Bank of America, which is overseen by the OCC. About the time I interviewed Gnaizda, Mozilo stopped talking to the media because of Countrywide’s pending sale to Bank of America and all the bad press he was getting. So I never got his version of the meeting.
As for the OTS, here is the Washington Post’s take:
As the banks under OTS supervision expanded high-risk lending, the agency failed to rein in their destructive excesses despite clear evidence of mounting problems, according to banking officials and a review of financial documents.
Instead, OTS adopted an aggressively deregulatory stance toward the mortgage lenders it regulated. It allowed the reserves the banks held as a buffer against losses to dwindle to a historic low. When the housing market turned downward, the thrifts were left vulnerable. As borrowers defaulted on loans, the companies were unable to replace the money they had expected to collect.
And here is the agency’s main response in the story:
Scott M. Polakoff, the agency’s senior deputy director, said OTS had closely monitored allowances for loan losses and considered them sufficient, but added that the actual losses exceeded what reasonably could have been expected.
“Are banks going to fail when events occur well beyond the confines of reasonable expectation or modeling? The answer is yes,” he said in an interview.
I recommend reading the entire story, which is HERE.
And in other mortgage news…
Posted in: Bank of America • Countrywide • Downey Financial • IndyMac • Meltdown • Washington Mutual | 3 Comments »
November 20th, 2008, 4:10 pm by John Gittelsohn
 The Federal Deposit Insurance Corp. is encouraging private lending institutions to emulate the agency’s program for helping distressed borrowers at IndyMac Federal Bank, which the FDIC seized in July.
Under the FDIC’s program, distressed borrowers can arrange loan modifications with a goal of 38 percent of gross income going to house payments through the use of interest rate reductions, amortization term extensions, and in some cases, principal deferments.
“I would encourage all industry participants to adopt the FDIC Loan Modification Program as the standard approach in dealing with the grave problems facing us with continued mounting foreclosures,” said Sheila Bair, the FDIC chairwoman.
Last week, Bair proposed a $24 billion federally-backed bailout program for distressed homeowners, which has been opposed by other members of the Bush Administration.
As of today (Nov. 20) IndyMac has completed more than 5,300 loan modifications in response to mailings sent to more than 23,000 eligible borrowers, the FDIC said. Thousands more modifications are in the pipeline.
IndyMac spokesman Evan Wagner said Orange County home owners accounted for about 3 percent of the bank’s 46,000 severely late loans as of mid-October and may be eligible for modification.
Nationwide, 1.6 million total loans are more than 60 days delinquent, a number expected to exceed 3.8 million through the end of 2009, according to the FDIC.
For more information on the FDIC’s “Mod in a Box,” CLICK HERE.
IndyMac customers who need assistance with their loans can contact the bank by calling 877-908-4357.
Related stories …
Other business stories …
Posted in: Bank woes • Credit Crunch • Defaults & Foreclosures • IndyMac • Meltdown • Uncategorized • Bair • FDIC | 4 Comments »
October 6th, 2008, 7:01 am by Ronald Campbell
So who was the biggest home lender in Orange County and the state last year?
Hint: It ran a very annoying ad campaign.
Another hint: Terminated with extreme prejudice.
Yep, WaMu.
Washington Mutual easily outdistanced Wells Fargo and Bank of America, according to our analysis of The Fed’s Home Mortgage Disclosure Act database. Countrywide, which operates under two names, was close behind.
WaMu was a big subprime player, and that helped make it among the biggest casualties in the credit crunch last month. It also helped WaMu lead the mortgage market in Orange County, making $5.4 billion in mortgages, which accounted for 13% of the $40.4 billion total.
Two other members of the top 10 mortgage lenders — Countrywide and IndyMac — also failed or were swallowed up, and a third, World Savings, played a part in parent Wachovia’s forced trip to the altar.
Here’s an interesting stat: Bank of America and Countrywide Financial together accounted for 19% of the market in O.C., or nearly 1 in every 5 loans made. Those two companies are now one.
And how about the other big mergers? Wells Fargo is buying Wachovia, and JPMorgan Chase took over WaMu. Wells, Wachovia, JP Morgan, WaMu, BofA, and Countrywide together last year did a combined $20.2 billion, or nearly half the market. If the Wells-Wachovia deal goes through, then there will be only 3 independent companies, where once there were six making 1 out of every 2 loans in Orange County.
Below are the top 10 mortgage lenders in Orange County in 2007:
| Lender |
Prime |
Subprime |
Total |
Subprime percent |
| WASHINGTON MUTUAL BANK |
$4.8 billion |
$662 million |
$5.4 billion |
12.2% |
| WELLS FARGO BANK, NA |
$3.3 billion |
$51 million |
$3.4 billion |
1.5% |
| BANK OF AMERICA, N.A. |
$2.7 billion |
$62 million |
$2.7 billion |
2.3% |
| COUNTRYWIDE HOME LOANS |
$2.4 billion |
$302 million |
$2.7 billion |
11.1% |
| COUNTRYWIDE BANK, FSB |
$2.1 billion |
$295 million |
$2.4 billion |
12.3% |
| WORLD SAVINGS BANK, FSB |
$1.3 billion |
$551 million |
$1.9 billion |
29.3% |
| JPMORGAN CHASE BANK |
$1.7 billion |
$39 million |
$1.7 billion |
2.2% |
| INDYMAC BANK, F.S.B. |
$1.4 billion |
$329 million |
$1.7 billion |
19.3% |
| CITIMORTGAGE, INC |
$1.1 billion |
$9 million |
$1.1 billion |
0.8% |
| ABN AMRO MTG GROUP INC |
$806 million |
$2 million |
$808 million |
0.3% |
And here are the top 10 statewide:
| Lender |
Prime |
Subprime |
Total |
Subprime percent |
| WASHINGTON MUTUAL BANK |
$46 billion |
$8.4 billion |
$54.4 billion |
15.5% |
| WELLS FARGO BANK, NA |
$37.6 billion |
$940 million |
$38.5 billion |
2.4% |
| BANK OF AMERICA, N.A. |
$32.3 billion |
$490 million |
$32.8 billion |
1.5% |
| COUNTRYWIDE HOME LOANS |
$23.5 billion |
$3.4 billion |
$26.8 billion |
12.5% |
| COUNTRYWIDE BANK, FSB |
$20.5 billion |
$3.2 billion |
$23.7 billion |
13.4% |
| WORLD SAVINGS BANK, FSB |
$14.3 billion |
$5.9 billion |
$20.2 billion |
29.1% |
| INDYMAC BANK, F.S.B. |
$13.8 billion |
$3.8 billion |
$17.6 billion |
21.6% |
| JPMORGAN CHASE BANK |
$14.3 billion |
$490 million |
$14.8 billion |
3.3% |
| CITIMORTGAGE, INC |
$11.4 billion |
$160 million |
$11.5 billion |
1.4% |
| NATIONAL CITY BANK |
$6.3 billion |
$880 million |
$7.1 billion |
12.3% |
Here’s more of our mortgage meltdown coverage:
Posted in: Alt A news • Bank woes • Countrywide • IndyMac • Loan volume • Meltdown • Subprime news • Uncategorized • Washington Mutual | 5 Comments »
October 1st, 2008, 3:00 am by Ronald Campbell
The list of major subprime lenders for 2006 and 2007 resembles the casualty roster from the Battle of Verdun in World War I. Only difference: way fewer walking wounded this time.
Of the 30 biggest subprime home lenders in 2006, measured by dollar volume, 22 have gone bankrupt, shut down, been sold or been seized by Uncle Sam. Most of the survivors have scaled back.
Yesterday we began exploring The Fed’s Home Mortgage Disclosure Act database by describing how Washington Mutual quadrupled its bet on subprime lending in 2007, just in time for the housing downturn.
Today we’re going deeper, using HMDA data to show what happened to the top 30 subprime lenders nationwide in 2006; these 30 together accounted for 64 percent of the subprime home loans made that year.
The list makes for grim reading:
| Lender |
Rank 2006 |
Volume 2006 (billions) |
Rank 2007 |
Volume 2007 (billions) |
Status |
| New Century Mortgage Corp. |
1 |
$36.9 |
NA |
$- |
Bankrupt |
| Countrywide Home Loans |
2 |
$36.4 |
2 |
$17.4 |
Bought by BofA |
| Fremont Investment & Loan |
3 |
$30.0 |
26 |
$3.0 |
Shut down |
| National City Bank |
4 |
$30.0 |
17 |
$4.3 |
Struggling |
| WMC Mortgage Co. |
5 |
$27.1 |
330 |
$0.1 |
Shut down |
| Option One Mortgage Corp |
6 |
$23.9 |
7 |
$9.4 |
Shut down, servicing unit sold |
| Argent Mortgage Co. |
7 |
$21.2 |
36 |
$2.0 |
Shut down |
| Long Beach Mortgage Co. |
8 |
$18.2 |
NA |
$- |
Shut down |
| Wells Fargo Bank |
9 |
$16.4 |
9 |
$7.1 |
Wholesale unit closed |
| American Home Mortgage Corp. |
10 |
$14.5 |
0 |
$- |
Shut down |
| Accredited Home Lenders Inc |
11 |
$13.4 |
23 |
$3.4 |
Wholesale unit closed |
| Indymac Bank |
12 |
$12.2 |
3 |
$12.6 |
Seized by FDIC |
| BNC Mortgage |
13 |
$11.8 |
14 |
$5.0 |
Shut down |
| Decision One Mortgage |
14 |
$11.2 |
30 |
$2.5 |
Shut down |
| Equifirst Corp. |
15 |
$9.8 |
10 |
$6.7 |
Switched to FHA |
| Countrywide Bank |
16 |
$9.3 |
5 |
$11.1 |
Bought by BofA |
| Chase Manhattan Bank USA |
17 |
$8.0 |
8 |
$9.2 |
Wholesale unit closed |
| Greenpoint Mortgage Funding |
18 |
$7.3 |
15 |
$5.0 |
Shut down |
| Wilmington Finance Inc. |
19 |
$7.2 |
19 |
$4.1 |
Wholesale unit closed |
| Novastar Mortgage Inc. |
20 |
$7.1 |
39 |
$1.8 |
Shut down |
| Resmae Mortgage Corp. |
21 |
$6.8 |
48 |
$1.2 |
Shut down |
| Homecomings Financial Network |
22 |
$6.8 |
18 |
$4.2 |
Shut down |
| Beneficial Co. |
23 |
$6.0 |
11 |
$6.7 |
Operating |
| First Magnus Financial Corp. |
24 |
$5.9 |
NA |
$- |
Shut down |
| Washington Mutual Bank |
25 |
$5.6 |
1 |
$19.7 |
Seized by FDIC, sold to JPMorgan Chase |
| Encore Credit Corp. |
26 |
$5.0 |
NA |
$- |
Shut down |
| Lehman Brothers Bank |
27 |
$5.0 |
12 |
$6.2 |
Bankrupt |
| First NLC Financial Services |
28 |
$4.5 |
NA |
$- |
Shut down |
| People’s Choice Financial Corp. |
29 |
$4.5 |
NA |
$- |
Shut down |
| HFC Co. |
30 |
$4.4 |
16 |
$4.9 |
Operating |
Countrywide shows up twice by the way because it operates under two federal regulators. The Fed oversees Countrywide Home Loans while the Office of Comptroller of the Currency supervises Countrywide Bank.
WaMu was not the only major lender that rolled the dice on subprime in 2007.
World Savings made WaMu look timid, expanding its subprime business by seven times, from $1.5 billion in 2006 to $10.65 billion in 2007. Banking operations of its parent, Wachovia, were just taken over by Citigroup in a shotgun marriage arranged by the Fed.
And then there’s Bear Stearns — remember them? — who doubled their subprime lending from $1.95 billion in 2006 to $3.9 billion in 2007.
World Savings and Bear Stearns were both too small in 2006 to make our list.
Thanks to Matt for digging up the status of all the lenders. In many cases that involved grave-digging.
We’ll continue our exploration of HMDA in future posts. If you have an idea, please tell us in the Comments section or send me an e-mail.
Here’s more mortgage meltdown coverage:
Posted in: Bank woes • Bear Stearns • Citigroup • Countrywide • Credit Crunch • Fed • Fremont • IndyMac • New Century • Option One • Subprime news • Uncategorized • Washington Mutual | 18 Comments »
August 27th, 2008, 12:00 pm by Mathew Padilla
The thrift unit of IndyMac Bancorp in Pasadena that was seized in July by regulators is expected to cost a government-run insurance fund $8.9 billion, up from an original estimate of $4 billion to $8 billion, Reuters reported yesterday.
The Federal Deposit Insurance Corp. also said it will soon start widely marketing IndyMac’s assets.
“We hope to market it certainly in the third quarter,” FDIC Chairman Sheila Bair told a news conference. “I think we’re going to be marketing it both as a whole bank as well as in pieces.”
Real the full story HERE.
And in related IndyMac news…
Posted in: Company Watch • IndyMac | 6 Comments »
August 20th, 2008, 11:25 am by Andrew Galvin
The Federal Deposit Insurance Corp., which took over the former IndyMac Bank last month, is launching a streamlined loan modification program for troubled mortgage borrowers that it hopes will serve as an example for other lenders.
The thinking is that the FDIC can best preserve IndyMac Federal Bank’s assets and “increase the value of distressed mortgages by rehabilitating them into performing loans.”
On July 11, Federal regulators closed Pasadena-based IndyMac Bank, which had operations throughout Orange County, making it the biggest retail bank to fail amid the credit crunch.
This morning, FDIC Chairman Sheila Bair said modification proposals are going out this week to about 4,000 borrowers who are in or near default, with another 25,000 expected in coming weeks. The proposals call for troubled borrowers who are living in their homes and are willing to verify their income to get new terms that keep their ratio of debt to income at 38 percent.
The interest rate on the new loans will be permanently capped at the current Freddie Mac survey rate for conforming mortgages, which is at about 6.5 percent. Some borrowers may get a lower rate for the first five years if needed to meet the 38 percent debt-to-income ratio, FDIC officials said. In some cases, the FDIC will consider deferring or forgiving principal, if necessary, Bair said.
“It is my hope that this system will serve as a further catalyst to promote more loan modifications for troubled borrowers across the country,” Bair said.
IndyMac services about $184 billion in mortgage loans, including $15 billion that it owns directly, FDIC officials said.
For details of the FDIC’s loan modification plan for IndyMac borrowers, click here. IndyMac borrowers can call 1-800-781-7399.
Related stories:
Posted in: Company Watch • IndyMac | 13 Comments »
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