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IndyMac Lending Freeze

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In response to an unstable housing and mortgage market, the Pasadena, CA based bank, IndyMac is moving to close all forward mortgage lending business, and cut 3,800 company jobs—more than half of their work force. The industry leader in alt-A loans, where borrowers with good credit, but fall below prime standards, has come to a point where the nation's mortgage market collapse and credit loss has taken its toll. Indymac's main problem is, that it is not well capitalized, and would have to shrink assets to raise the funds needed to stay afloat. By cutting loan production, and reducing operating expenses by 60% with a smaller work force, the company can avoid further damage caused by rising defaults and shrinking capital. Indymac reported its first loss in the company's 23 year history, after taking a $184.2 million hit. The company is forced to take aggressive measures, as it projects the trend to continue as long as the U.S. housing market struggles.

Category: News
Uploaded: July 9th, 2008 @ 6:00 pm
Author: employmentcrossing

Length: 03:27
Rating: Whole StarWhole StarWhole StarHalf Star
Views: 1,600

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