A few weeks ago Financial Freedom issued a lender alert to brokers that said they would be suspending the cash account until the secondary market comes back for jumbo loans.
After hearing from some RMD readers that their retail originators would still have access to the product, I did some checking. I was able to confirm that while wholesale partners wont have access to the product, retail originators can still originate the cash account. No word on how long this will last.
Also, ML Implode is reporting that their sources put government officials at IndyMac this weekend doing “the deed”.
My sources put Gov’t officials at IndyMac this weekend doing the deed. I am being told an announcement will come tomorrow first thing, that IndyMac is no more and at least their wholesale operation is gone effective immediately. Apparently wholesale operations will get pink slips, no new loans will be locked and all existing loans in the pipe must be closed by the end of July.
If this turns out to be true who knows what will happen to the Cash Account… I’ll keep you posted.
Technorati tags: Reverse Mortgage, News, Financial Freedom, HECM, FHA
