| Follow us on Twitter |
Private investors along with IMB Management Holdings plan to inject $1.3 billion of capital into the bank once they have officially acquired it, which is expected to happen late January or early February. The buyers will also assume the first 20 percent of losses from the failed bank while the FDIC will absorb anything over and beyond.
The business model going forth after the transaction is complete will remain focused on mortgage lending and mortgage loan servicing.
“The proposed business strategy of this new entity is a good fit for the thrift industry,” said OTS Director John Reich. “Despite the current crisis facing financial institutions and the entire global economy, today’s announcement affirms the continued value of the federal thrift charter.”
Additionally, the loan modification program introduced after the FDIC’s takeover of IndyMac will be a condition for the FDIC by investors if the program is to continue. The FDIC introduced the loan modification program back in August of 2008 and has saved the bank an estimated $423 million.
"The FDIC and IndyMac staff accomplished a tremendous amount of work in a short period of time to help thousands of struggling homeowners stay in their homes and maximize value for both the Deposit Insurance Fund and mortgage investors," said John Bovenzi, CEO of IndyMac Federal and FDIC Chief Operating Officer.
The Office of Thrift Supervision (OTS) has conducted a preliminary review of IMB Management Holdings L.P. which includes a close look at the companies’ character, integrity, financial and managerial resources, and general business plan. Full details will be released by the FDIC and OTS once the transaction is complete.
4.5 percent mortgage rates - could it happen in January?
Posted January 2nd, 2009 by jredz
