Some extra credit on the FDIC’s IndyMac sale
By: PAUL JACKSON and TERI BUHL
March 20, 2009 8:40 AM CST
We’re hearing some great color around the IndyMac sale that we thought we’d share with HW readers — our original story announcing the completion of the sale is right here, for those that missed it.
Obviously, the sale completion had been delayed, but it’s not entirely clear why; the deal was supposed to close in late January or early Feburary. It’s now late March, officially. We’re hearing from sources close to the deal that the hold up was due to details over financing the transaction between the FDIC and FHLB. Press representatives at OneWest had no comment on this, however.
We’re also hearing — confirmed from a source inside one of the investment groups behind OneWest — that Freedom Financial, the reverse mortgage wing owned by IndyMac and bought by the investment group, will be going through some stiff layoffs of at least 20 percent of staffing. But we’re hearing, as well, that the new owners are committed to the reverse mortgage space for the long-term.
Lastly, many readers may have missed this, because we sure did. In the FDIC’s statement, the cost to the deposit insurance fund is now estimated to be a whopping $10.7 billion. Read that again: ten point seven billion dollars. The FDIC had originally estimated a cost of $4 to $8 billion.
Want to know what likely accounts for the extra loss? Sure you do. We think it’s the $1 billion or so due Fannie Mae for loan repurchases; HW’s Teri Buhl had first reported on the issue late last year, and we’ve been told that the repurchase liabilities for those loans stayed with the FDIC.
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March 20th, 2009 8:02 pm by Dennis Kelley
Why is everyone so silent about those who lost money when the FDIC took over the bank. I was told that once the sale was completed, there was a chance we could recoup a portion of our loses.
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March 21st, 2009 7:25 pm by New IndyMac Owners Bring Layoffs To Financial Freedom | Reverse Mortgage Information
[...] Earlier this morning there was a conference call where I’m told Michelle Minier read a script to announce layoffs and was followed by an HR woman answer questions. It’s not clear how many Financial Freedom employees were laid off yet, but former employees told RMD it wasn’t a small number and Housingwire reports layoffs of at least 20 percent of its staff. [...]
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March 22nd, 2009 10:47 am by Bob Hager
I second the question posed by Dennis Kelley. All the FDIC said in announcing the sale was that uninsured depositors were not addressed at this time..
“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.”
What does the above mean? That there are no funds remaining for the uninsured depositors and that all the depositors will only receive is the 50% they got when the FDIC closed Indy Mac.
If it can be considered a bright spot, the statement also said: ” The FDIC will retain the remaining assets for later disposition.”
How large are the remaining assets and are there other creditors waiting in the wings that take precedence over uninsured depositors..
Bob Hager
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March 22nd, 2009 12:41 pm by Bob Hager
Here’s some more bad news.
“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.”
Have a nice day…
Bob Hager
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