IndyMac is really bad!

Dud? Joined: 23 Aug 2007 Posts: 4

Yes, the arrogant, slow, and tedious lender IndyMac is back to their old games! 5 days from clear to close to a package at the attorney's office. They are red-lining most of Atlanta, and their underwriting managers cannot even read a VOE. I guess we should be happy that they are only 1/4 point out of the market on conforming. They are 1/2 out on Alt-A, that is if they do not cut your appraisal by 25%!

I personally am selling their stock short. I think they announce earnings next week or the week after and I am sure that they will have lost a ton! Mike Perry take note, the wrong folks survived your recent layoffs!!!!

Wrecking crew Joined: 07 Aug 2007 Posts: 1832

YolandaJBrown wrote:

Yes, the arrogant, slow, and tedious lender IndyMac is back to their old games! 5 days from clear to close to a package at the attorney's office. They are red-lining most of Atlanta, and their underwriting managers cannot even read a VOE. I guess we should be happy that they are only 1/4 point out of the market on conforming. They are 1/2 out on Alt-A, that is if they do not cut your appraisal by 25%!

I personally am selling their stock short. I think they announce earnings next week or the week after and I am sure that they will have lost a ton! Mike Perry take note, the wrong folks survived your recent layoffs!!!!

Sounds like you have had a bad experience with a loan and are trying to make all of IndyMac look bad. All of their underwriting managers cannot read a VOE?? That's a bit of an exaggeration - also an indication you had a falling out with a manager over a deal. ALL major lenders are watching GA right now because of rampant fraud, along with FL, MI, and others. It's not called Red-Lining; it's called Risk Management.

Dyn-o-mite! Joined: 30 Aug 2007 Posts: 252

If memory serves me right, metro atlanta has some of the highest foreclosure, mtg fraud rates in the country. Banks can't be too careful when they face, more than ever before, the potential of holding a lot of medicore paper.

Wrecking crew Joined: 01 Nov 2007 Posts: 1583

Banks will be in a pickle next year because this so called "risk management". Right or wrong, it will hit poorer areas harder. In a "catch 22" it will be seen and used by the politicians(for their re-election) as red-lining, especially with the current tightening of credit standards. Can you tell I am not a fan of politicians?

Wrecking crew Joined: 07 Aug 2007 Posts: 1832

Rotag wrote:

Banks will be in a pickle next year because this so called "risk management". Right or wrong, it will hit poorer areas harder. In a "catch 22" it will be seen and used by the politicians(for their re-election) as red-lining, especially with the current tightening of credit standards. Can you tell I am not a fan of politicians?

We'll see polictical fall-out from this mortgage crisis for a long time. Banks will simply pay the fines if accused of Red-Lining; it's cheaper than holding millions and millions of dollars of worthless paper, litigation costs, and a surplus of REO on their hands.

CRA programs are still there; but the free money is gone.

Posted: Tue Nov 06, 2007 12:40 am

I believe there are 2 issues of merrit here ( Indymac is part of Tangelo's family { so why make it easy})
Red lineing, everyone knows it goes on! If a new bank wants into a State they have no presence in they have to kiss the un-washed donkeys of the local gov in order to setup shop ie ( LMI programs FTHB programs in specified areas ( RED LINE AREAS) in order to get their charter
I believe what may take place is manylenders will soon not do business in certin states ( Red lineing a state rather than one area of it)

Dud? Joined: 26 Oct 2007 Posts: 7 Location: Southwest US

So do you all think that now is a good time to get a gig with a bank in a position directly tied to LMI? Regardless of what you think of these "redlines areas" a bank has to keep a LMI percentage in order to continue a banking license and be able to open new branches right? Also, PR is always important right? What do you all think?

Wrecking crew Joined: 01 Nov 2007 Posts: 1583

Write it down. As I mentioned the other day. With the elimination of banking products through tightening of credit standards. I can't see how will get away from this by just paying fines. Lawsuits will be filed.

Actions by attorney generals although laudable are throwing salt on the wound and not helping the economy as a whole. If investors are unwilling to buy bank packaged loans because of potential lawsuits the credit market will continue to stall. It will becaome unstalled once those investors feel that the risk reward is worth it. Translation when they get a higher rate of return. Those higher rates will be passed along to consumers. IMHO that is not what consumers with resetting rates need. All of this is on top of the weak dollar and high oil that ARE inflationary causes.

I hope that the legislation and attorney general actions that should be done are stalled until the economy can get its legs underneath it again and take the hits.

Flash in the pan Joined: 01 Nov 2007 Posts: 75

Rotag,
That would be nice, but the media machine is at full steam ahead. There is no stalling this one. It?s all about perception and votes, now!! It?s been fun, but from here on out, this process will move fast and be painful for all!!

Wrecking crew Joined: 16 Mar 2007 Posts: 1685

IndyMac has been like tips on a bull from their first day in the business. Completely and utterly a waste of time. A collection of UCLA rejects.

E-Mits, the Edsel of AUS's.