IndyMac Lending Freeze

Back


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 10th, 2008 @ 1:00 am
Author: employmentcrossing

Length: 03:27
Rating: Whole StarWhole StarWhole StarHalf Star
Views: 1,708

Tags: "3 "after "alt-a "borrowers "cutting "indymac "indymac" "nation's "pasadena" $184.2 23 60%" 800 and bank" by company company's credit" cuts" expenses first freeze" good history" hit" in indymac its jobs" lending" loan loans" loss market" million mortgage mortgage" operating production reducing reported taking the with year

Related Video Links:


» View Video Comments For IndyMac Lending Freeze
» View employmentcrossing's Other Uploaded Videos

Video Thumbnails:


Thumbnail #1 Video Thumbnail #1:
Thumbnail #2 Video Thumbnail #2:
Thumbnail #3 Video Thumbnail #3:


Video Embedding Code:


Video Url:


Embed Code:

* Embed this video on your website, social bookmark, myspace, or blog.