LOS ANGELES (AP) -- IndyMac Bank's assets were seized by federal regulators on Friday after the mortgage lender succumbed to the pressures of tighter credit, tumbling home prices and rising foreclosures.
The bank is the largest regulated thrift to fail and the second largest financial institution to close in U.S. history, regulators said.
IndyMac customers with funds in the bank were limited to taking out money via automated teller machines over the weekend, debit card transactions or checks, regulators said.
The lender's failure came the same day that financial markets plunged when investors tried to gauge whether the government would have to save mortgage giants Fannie Mae and Freddie Mac.
Shares of Fannie and Freddie dropped to 17-year lows before the stocks recovered somewhat. Wall Street is growing more convinced that the government will have to bail out the country's biggest mortgage financiers, whose failure could deal a tremendous blow to the already staggering economy.
The FDIC estimated that its takeover of IndyMac would cost between $4 billion and $8 billion.
IndyMac's collapse is second only to that of Continental Illinois National Bank, which had nearly $40 billion in assets when it failed in 1984, according to the FDIC.
So, do you think it will get easier to obtain mortgages now? Not through tradional sources it won't. But it does open up lending by private investors with no bank qualifying and that is what Home Seller Assist is all about.
They can deal with credit scores as low as 500 and provide fixed interest rates of 4-8%. So if you are a seller, agent, investor, buyer or builder, visit us now and click on Buyer's Applicaion on the left and get your loan or a loan for your buyer now.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment