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| User Info | IndyMac claimed they would fund all locked loans, huh? in forum [General] | |||
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Okeven Posts: 1395 Incept: 2007-10-06 
Bodie, CA 
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****ing liars. In the press release on their website earlier today (the one we all read), they said they would fund all loans that were already locked. That is basically a lie. They are requiring a 1% deposit IN ORDER TO KEEP THE EXISTING RATE LOCK. It must be wired to them no later than this Thursday. No broker will do that. Can you imagine paying a lender $4,000 to keep a rate lock you already have on a $400,000 loan? Uh-uh I don't think so. To top it off, they are requiring a deposit on every single loan you currently have locked with them. If you have 10 loans in process, and send in 1% deposits on only 9 of them, they will cancel the rate locks ON ALL 10 LOANS. I believe that language was included in the general press release in order to signify some liquidity was remaining in the company, when, in reality, they clearly have none. It makes their situation look even worse than it already is. Bastards. Here is what was sent out to their approved brokers: Quote:In order to protect your rate locks, we will require a 1% cash deposit to convert these loans to mandatory delivery. All fees must be received by the end of business on Thursday, July 10th, or your rate locks are subject to cancellation. These fees are fully refundable in the event IMB declines the loan. This fee requirement is all inclusive. You must protect the entire pipeline as part of this process. If you do not submit the required fee for any individual loan as part of this process, all of your rate locks will be subject to cancellation. ---------- "So This is not bull market, this is ****ing bull**** market!!!" - Mliu 2008-07-08 01:47:37
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Fakemark Posts: 0 Incept: 2009-06-11
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I need hard proof of this and I will blow it out. Enough of Perry's ****.
2008-07-08 02:14:08
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Okeven Posts: 1395 Incept: 2007-10-06
Bodie, CA
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Will get it to you in the morning.
---------- "So This is not bull market, this is ****ing bull**** market!!!" - Mliu 2008-07-08 03:13:19
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Bluntfacts Posts: 693 Incept: 2007-10-09 Las Vegas, Nevada
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IMB = 71 cents ?? Sounds like they are in the intensive care unit for babies (stocks under $1). ---------- "Will someone come on TV and tell the truth about how bad it is". Jim Cramer August 2007. "We can change the focus to a soft blur; or sharpen it to crystal clarity" The Outer Limits 1964. 2008-07-08 03:21:36
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Fakemark Posts: 0 Incept: 2009-06-11
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ANY BROKERS OUT THERE THAT CAN VERIFY THIS ONE?
2008-07-08 11:38:33
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Digdouggler Posts: 2357 Incept: 2007-11-26 
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I'm very interested in the veracity of this rumor too, hits me where I work. Has any secondary market purchaser ever required this before? ---------- "The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system" 2008-07-08 12:16:45
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Genesis Posts: 66463 Incept: 2007-06-26 
Royal Flush!
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If its true I can't imagine that anyone would comply with it; ergo, it is a defacto shutdown of all channel funding and repudiation of all existing locks. In other words they're trying to SAY they're repudiating all locks and shutting down these channels immediately because doing so is equivalent to announcing that they're out of business. Nobody in their right mind is going to become an unsecured creditor to an institution in this sort of financial condition to "protect" their lock. They'll go somewhere else instead. So yes, this claim is important. VERY important, given that it would appear to call "LIAR!" on the original press release. ---------- I used to play flute; I wonder if I can play a fife? I incite prosecutors to create "Bubba Sausage Parking Lot" projects Darrell Issa has a middle finger and knows how to use it - Me Last modified:
2008-07-08 12:21:22 by genesis
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Aztrader Posts: 4884 Incept: 2007-09-10 Scottsdale, AZ
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http://globaleconomicanalysis.blogspot.c.... Indymac Says "No Bids On Its Mortgage Loan Portfolio" Indymac has been notified that it is no longer considered a "well capitalized bank". A Stakeholder Letter" posted on Indymac's Corporate Blog describes the grim situation. As we stated in our financial update on May 12, 2008, we have been working with our investment bankers to raise additional capital. To-date, we have not been successful with these efforts, and, while we will continue these efforts with our bankers and others, we don’t expect to be able to raise capital until there is more stability and less uncertainty in the housing and mortgage markets. My Translation: "Don't expect miracles. They are not coming" We expect our loss for the second quarter to be larger than Q108, but it is difficult at this time to be more precise given the significant uncertainty surrounding accounting estimates, fair value accounting and other accounting matters. My Translation: "We will stretch accounting rules as far as we can, but right now, things look hopeless, even to us." Based on information we have provided to our regulators, they have advised us that we are no longer “well capitalized”, which we stated on May 12 was a possible scenario. My Comment: The stock market figured out Indymac (IMB) was not well capitalized sometime around October of 2007. Except for one sharp bear market rally in January, the stock has been in a freefall ever since. The share price is now 71 cents, down from about $25. Without an external capital raise, the traditional way to improve safety and soundness is to sell assets and shrink the balance sheet, which in normal times generally has the effect of improving capital ratios and bolstering liquidity. Yet in this environment, where either there are no bids for most of IMB’s mortgage loans and securities or the bid/ask spreads are abnormally wide, “fire-selling” assets would actually deplete capital further. My Comment: Indymac needs to consider the strong possibility that its loan portfolio is of negative value and that they would have to pay someone to take it. A consequence of falling below well-capitalized is that we are no longer permitted to accept new brokered deposits or renew or roll over existing ones, unless we get a waiver from the FDIC. While we have submitted a waiver application, it is uncertain as to whether such a waiver will be granted. My Comment: The waiver should not be granted. There is no reason to throw good money after bad. As a result of the above, we have made the difficult decision, effective July 7, 2008, that we will no longer accept any new loan submissions or rate locks in our retail and wholesale forward mortgage lending channels, except for our servicing retention channel. The above actions will necessitate the reduction in our present workforce from approximately 7,200 to roughly 3,400 or so over the next couple of months, which should reduce our operating expenses by roughly 60%. My Translation: It's all over. Washington Mutual (WM) and/or Wachovia (WB) are likely to find themselves in a similar situation in due time. Mike "Mish" Shedlock 2008-07-08 13:46:38
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Aztrader Posts: 4884 Incept: 2007-09-10 Scottsdale, AZ
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Bancorp (IMB.N) Eric E. Wasserstrom....... +1-212-713 9435 Analyst Robert V. Peruzzi, CFA..... +1-212-713 4290 Analyst (Rev) Price (03 Jul 2008)........................ US$1.04 12-month rating (UR).....Neutral * (Unchanged) 12m price target (UR)................... US$2.25 Mkt Cap......................................US$0.10bn 2008E........................................... US$(4.65) 2009E........................................... US$(0.95) *Under review and exception to core rating bands - see page 11 Company No Longer Well Capitalized; Capital Raising Strategies L.imited Capital pressures continue in 2Q; company no longer well capitalized After the close, IMB announced: 1) it expects a loss for 2Q larger than 1Q; 2) capital raising efforts have been unsuccessful to date; and 3) its regulators have determined that it’s no longer well capitalized. As a consequence of its capital classification, it is no longer permitted to accept/roll over brokered deposits. IMB indicated that it will curtail new loan production and reduce its workforce by over 50% in order to shrink its balance sheet and improve its capital p.osition. 2Q loss likely reflects further credit deterioration IMB’s 2Q loss likely reflects additional credit deterioration within the company’s on balance sheet mortgage and residential construction loan exposure. Given our outlook for continued credit deterioration in these areas, and in light of IMB’s current capital position, we believe the c.ompany has few strategic options available at this time. Placing our rating and price target under review As a result of today’s announcement, we are placing our rating and price target for IMB under review. We will update these items following additional discussions with the company’s m.anagement team. Valuation Our $2.25 price target, which reflects a P/BV ratio of 0.3x our 09E BV, and our rating are being placed under review. Capital Trust (CT.N) Omotayo Okusanya, II, CFA..... +1-212-713 1864 Analyst Jeffrey Spector.................. +1-212-713 6144 Analyst Selim D. Tay-Agbozo........ +1-212-713 3084 Associate Analyst Price (03 Jul 2008)...................... US$16.77 12-month rating...... Prior: Sell => Neutral * 12m price target.....Prior:US$19.00 => US$15.50 Mkt Cap......................................US$0.29bn 2007E............................................. US$4.76 2008E............................................. US$3.23 *Exception to core rating bands - see page 11 U.pgrading To Neutral; Stock More Reflective of Earnings/Dividend Risk Upgrading To Neutral Given Recent Sell-Off Given the ~33% sell-off in the past month, we believe the risk-reward profile for CT has improved. We are therefore upgrading to a Neutral rating although we remain concerned about earnings and dividend risk given headwinds. Our forecast calls for the dividend to be reduced to $.0.60 a quarter (from $0.80) in late ‘08/early ‘09. Earnings and Dividend Risks Appear Increasingly Priced In In our view, the recent sell-off has to do with investors becoming increasingly aware of potential headwinds at CT. Specifically, 1) earnings drag likely as credit provisioning levels increase; 2) potential impact to earnings from exposure to Macklowe properties; 3) high exposure to subordinate/mezzanine loans; 4) upcoming refinancing on substantial lines of credit; and 5) book-value risk as CT does not mark its CMBS portfolio to market. See our 6/23 report “.Commercial Mortgage REITs: Still no light at the end of the tunnel” for more details. Stock Could Rally If CT Reports A Decent Quarter We believe CT could report a decent quarter as aforementioned headwinds may not impact earnings until late 2008/early 2009. We note that short interest is at an all-time high, suggesting s.horts could cover if 2Q results are decent. Reducing PT To $15.50 from $19; Upgrading To Neutral Our $15.50 price target is 0.85x our ‘09 BVPS estimate of ~$18.50. Our BV estimate makes a $5 adjustment for CMBS mark-to-market per company disclosure. 2008-07-08 14:17:53
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Digdouggler Posts: 2357 Incept: 2007-11-26
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So what's the deal, was this deposit to re-lock the lock scheme ever verified?
---------- "The Federal Reserve, the central bank of the United States, provides the nation with a safe, flexible, and stable monetary and financial system" 2008-07-09 10:21:59
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Okeven Posts: 1395 Incept: 2007-10-06
Bodie, CA
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Yes, it is true. I forwarded the original email I received from Indy and there is an article about it on mortgage implode.
---------- "So This is not bull market, this is ****ing bull**** market!!!" - Mliu 2008-07-09 11:24:19
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Neontm968 Posts: 172 Incept: 2008-02-20
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hoary ****e... http://mrmortgage.ml-implode.com/2008/07.... 2008-07-09 11:28:50
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Genesis Posts: 66463 Incept: 2007-06-26
Royal Flush!
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That's NASTY. Go get 'em Hedgie! ---------- I used to play flute; I wonder if I can play a fife? I incite prosecutors to create "Bubba Sausage Parking Lot" projects Darrell Issa has a middle finger and knows how to use it - Me 2008-07-09 11:39:45
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Rad Posts: 375 Incept: 2007-08-27
The Yoga Mecca
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Plus most anyone who rate locked over the past several weeks did so at a high rate with fear that rates would further increase. If ones file is ready to fund today it means the package is complete and it can easily be moved to another lender and quickly. Every deal I locked I moved to another lender over the past week for a better rate so no one needs IMB's rate lock. On a related note the increase in mortgage applications reported today is horse****. Everyone is moving around their deals like musical chairs. The real numbers have to be a substantial decline. It's tough get a good deal approved - lenders are looking at inconsequential detail like ass hairs under a microscope.
---------- 2008-07-09 11:56:34
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Rad Posts: 375 Incept: 2007-08-27
The Yoga Mecca
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Hedgie, I'd help you if I could but proud to say I never did a loan with 'em. I did work there for a short time and mark it as the low point in my life. ---------- 2008-07-09 12:05:31
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Okeven Posts: 1395 Incept: 2007-10-06
Bodie, CA
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Quote:Hedgie, I'd help you if I could but proud to say I never did a loan with 'em. I never did one either. A pesky account rep put me on the email distribution list a few years back and I cannot get it removed, not that I want to anymore! ---------- "So This is not bull market, this is ****ing bull**** market!!!" - Mliu 2008-07-09 12:17:34
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Champagne Posts: 8341 Incept: 2007-08-06 
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Brokers cannot even get a damn Borrower to pay up front barely for an appraisal.
2008-07-09 12:19:09
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Genesis Posts: 66463 Incept: 2007-06-26
Royal Flush!
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This looks to me exactly as it looked when I first heard about it - a fairly transparent attempt to avoid having to fund ANYTHING. Now why would you do that unless you simply have nothing to fund WITH? Of course if THAT is the case, then the press release is a bald-faced lie. ---------- I used to play flute; I wonder if I can play a fife? I incite prosecutors to create "Bubba Sausage Parking Lot" projects Darrell Issa has a middle finger and knows how to use it - Me Last modified:
2008-07-09 12:21:14 by genesis
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Champagne Posts: 8341 Incept: 2007-08-06
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The point Karl is that NO ONE is going to cough up 1%...period. That is exactly the reason they are doing it.
2008-07-09 12:29:35
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Genesis Posts: 66463 Incept: 2007-06-26
Royal Flush!
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Exactly - that's what I said, basically. They did it because they know nobody will pay. Why would they do it then, knowing this? They have nothing to fund WITH but don't want to say that! ---------- I used to play flute; I wonder if I can play a fife? I incite prosecutors to create "Bubba Sausage Parking Lot" projects Darrell Issa has a middle finger and knows how to use it - Me 2008-07-09 12:40:10
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Champagne Posts: 8341 Incept: 2007-08-06
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Didn't another lender pull this a couple of years ago?
2008-07-09 12:45:59
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Okeven Posts: 1395 Incept: 2007-10-06
Bodie, CA
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I cannot remember anyone else trying anything quite like this. Many lenders who were still funding loans would add a 5% pricing adjustment to all products they no longer wanted to fund. Why they simply did not simply remove them, I do not know. The press release seems to imply that this applies to loans not signed as of Monday. I have a friend who is waiting on the wire on a loan that is supposed to fund today. I will keep you guys informed as to whether or not it actually gets sent. Another thing, if IndyMac was serious about collecting the 1% deposit, don't you think they would have included instructions on that press release? They don't even tell you where to start! They must have foreseen that all the account executives would simply disappear and NOBODY would actually cough up the money. ---------- "So This is not bull market, this is ****ing bull**** market!!!" - Mliu 2008-07-09 13:05:52
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Genesis Posts: 66463 Incept: 2007-06-26
Royal Flush!
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Nobody is going to do that. If you do, you're an unsecured creditor! If they go under that 1% deposit is GONE. ---------- I used to play flute; I wonder if I can play a fife? I incite prosecutors to create "Bubba Sausage Parking Lot" projects Darrell Issa has a middle finger and knows how to use it - Me 2008-07-09 13:06:46
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Okeven Posts: 1395 Incept: 2007-10-06
Bodie, CA
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Bingo!
---------- "So This is not bull market, this is ****ing bull**** market!!!" - Mliu 2008-07-09 13:08:50
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Genesis Posts: 66463 Incept: 2007-06-26
Royal Flush!
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BTW their stock is down another 13%..... its trading for 38 cents more than its worth. ---------- I used to play flute; I wonder if I can play a fife? I incite prosecutors to create "Bubba Sausage Parking Lot" projects Darrell Issa has a middle finger and knows how to use it - Me 2008-07-09 13:10:05
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