Wednesday, July 9, 2008

IndyMac Stops Making Home Loans

On Monday, Alt-A loan giant IndyMac Bancorp said that it will stop making most types of mortgage home loans, and layoff about 1/2 of its workforce. IndyMac says they'll fund the loans already in the pipeline. Company execs also said they'll continue offering their reverse mortgage product, and will continue operating their loan servicing division.

See the conservative take on the story from the Wall Street Journal, or try the perspective from the left at the Washington Post.

Consumer Tips
Have you got a loan approval from IndyMac? If you're in escrow on a property already, talk to your Realtor and loan processer to make sure the approval is still good. It would probably be wise to get a backup loan approval from another source, just in case IndyMac pulls their approval of your particular loan package during your escrow period.  Still shopping and haven't settled on a home yet? Get your loan pre-approval from somebody other than IndyMac.

Does IndyMac service your current mortgage? All the press releases & media stories I saw said IndyMac intended to continue doing loan servicing, meaning they'll continue to take and apply your monthly mortgage payments on existing home loans they'd been servicing before this announcement. It wouldn't hurt to call them and make sure they've got your mailing address. Why? If they do sell the servicing of your loan to another company, they must notify you by mail. IndyMac's website lists their Home Mortgage Customer Care line as 1-800-781-7399.