Financial Solution News

“IndyMac has announced they will no longer accept any new loan submissions or rate locks in either retail or wholesale, and are closing their “forward” mortgage business.”
Citing regulatory pressure to maintain its capital levels, IndyMac is shifting away from and shutting down much of its forward mortgage origination business to focus on its Reverse Mortgage unit, Financial Freedom, according to a letter from chief executive Mike Perry posted on IndyMac’s corporate blog.
IndyMac said as of July 7 it would no longer accept any new loan submissions or rate locks in its retail and wholesale forward mortgage lending channels, except for its servicing retention channel and would cut roughly half its staff of 7,200 over the next couple of months.
The company said it plans to honor all its existing rate locked loans and continue to fund them.
“While the managers and employees in these units have worked incredibly hard, these […]

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CIT Completes Exit of Business Including Entire Loan Book and Servicing Operations

NEW YORK-(BUSINESS WIRE) CIT Group Inc. (NYSE: CIT), a leading global commercial finance company, announced today that it has agreed to sell its Home Lending business, consisting of $9.3 billion in assets and related servicing operations, to Lone Star Funds for $1.5 billion in cash and the assumption of $4.4 billion of outstanding debt and other related liabilities. The servicing centers, which employ approximately 300 people, are located in Marlton, NJ and Oklahoma City, OK.
In a separate transaction, CIT agreed to sell its approximately $470 million manufactured housing portfolio to Vanderbilt Mortgage and Finance, Inc. for approximately $300 million. Net cash proceeds from the two transactions are expected to be approximately $1.8 billion.
In the second quarter of 2008, CIT expects to record an estimated pretax loss for the Home Lending segment of […]

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It is not just Bank of America that is reeling from subprime problems, the largest banks in the world have posted $290 billion of credit losses, since the beginning of 2007.

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Bank of America Net Drops 77%

Bank Of America, Credit Deterioration, Lenders With Problems 2007, Mortgage Defaults, Mortgage Delinquencies, Mortgage Implosion, mortgage news, Mortgage Video, Writedowns

Original post by Admin

Bank of America Net Drops 77%

Bank Of America, Credit Deterioration, Lenders With Problems 2007, Mortgage Defaults, Mortgage Delinquencies, Mortgage Implosion, mortgage news, Mortgage Video, Writedowns

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NEW YORK, April 15, 2008 (PRIME NEWSWIRE) — Beleaguered investors of Washington Mutual (NYSE:WM) were delivered more bad news by the company in Tuesday’s after-hours earnings announcement. The company reported a first-quarter loss of $1.14 billion and indicated that it expects Writedowns of $12 billion to $19 billion of its $187 billion portfolio of single family residential home loans in 3 to 4 years.
Litigation on behalf of Washington Mutual employees and 401(k) plan participants has commenced against the company for alleged violations of the Employee Retirement Income Security Act (ERISA) in the United States District Court for the Western District of Washington. If you are an employee of Washington Mutual and wish to discuss the investigation or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537), for more information. There is no cost or fee to you.
(more…)
Lenders With Problems 2007, Mortgage Industry […]

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Bear Stearns reaped a profit of $115 million or 86¢
a share before the JP Morgan takeover.

Bear Stearns, Lenders With Problems 2007, mortgage news, Mortgage Video

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The Federal Reserve Was Ready to Make Lending Available to Other Brokers on Same Day They Helped Out Bear Stearns; Borrowers at Discount Window Included Goldman Sachs, Morgan Stanley and Lehman Brothers.

Bear Stearns, Federal Reserve, Goldman Sachs, Lenders With Problems 2007, Mortgage Defaults, Mortgage Delinquencies, Mortgage Implosion, mortgage news, Mortgage Video

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Mortgage lenders are shutting down your home equity lines of credit in order to preserve their interests and combat homeowners from over mortgaging in depreciating markets.

heloc, Home Equity Line of Credit, Lenders With Problems 2007, mortgage news, Mortgage Video

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WAMU said that they wanted to, “Strengthening the Mortgage Industry” in a recent press release and now they need their mom to help them goto the bathroom.
They unveiled a program that they said would change the industry and they would now apply mortgage industry leadership standards. So what happened to this industry leadership?
They only NOW offered full disclosure to clients, maybe they were better off not telling clients about the mortgage they were getting.
On a serious note, it is too bad for their stockholders, the hundreds of employees they are letting go and the millions effected by their what we have all come to realize is actually a ‘Lack of Leadership’.

Here is their political spin in an effort to try to look good.

April 7, 2008, WaMu announced significant changes affecting our Home Loans business. As part of this
announcement, and consistent with the company’s retail focused strategy, WaMu has made the […]

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