National Mortgage News has been the source for updates on the sale of IndyMac, and today it’s reporting that the Federal Deposit Insurance Corp. hopes to complete a deal to sell a majority of IndyMac in December. According to an agency spokesman, "Our intent is to sell as much of it as possible to one buyer".
The FDIC has been using IndyMac to test its loan modification program and according to NMN, it’s expected that continuing the loan modification program will be a pre-condition of sale. An investment banking source familiar with the transaction, added that at least two parties are involved in the latest round of bidding. One of the bidders is a top player in the alt-A market. (is there still an Alt-A market?)
While the FDIC spokesman declined to discuss the bidding process, they did say, "We’ll be conducting bidding later this month." The FDIC placed IndyMac into a conservatorship this past summer and has been attempting to find a buyer ever since.
One of the most valuable assets included in the sale of IndyMac is their reverse mortgage division, Financial Freedom. While the Irvine, California based reverse mortgage lender has seen its production drop significantly over the past year, the company is still the #2 retail reverse mortgage lender and the #1 wholesaler according to data provided by Reverse Market Insight.
FDIC: IndyMac Sale Slated for December (Subscription Required)
