SirNitram wrote:
The same source earlier today cited freezing of all HELOCs.
a lot of banks will be freezing "high risk" HELOCS in the coming days. If you have a 95%LTV HELOC i can almost guarantee it will be frozen, or at the very least the bank will exercise it's right to reduce your credit limit.
Here's an interesting tidbit. Banks pull what is called a triad update quarterly on most equity lines. Translation: We get your three digit FICO score every three months. We have the right to pull it, it's in the disclosure of you Home Equity Line of Credit Agreement. Many (smart) banks, my employer included, are monitoring statistical appraisals on what they deem "higher risk" equity lines. If your FICO and/or your appraised value fall below a certain threshold, BAM! No more advances on your HELOC.
"This business will get out of control. It will get out of control and we’ll be lucky to live through it.” -Tom Clancy
IndyMac Bancorp Files for Liquidation After Seizure (Update4)
By Jeff St.Onge and Tiffany Kary
Aug. 1 (Bloomberg) -- IndyMac Bancorp Inc., once the second-largest U.S. independent mortgage lender, filed to liquidate its remaining assets three weeks after its bank was seized by U.S. regulators and put under other management.
IndyMac's liabilities are between $100 million and $500 million, according to the Chapter 7 filing by the bank holding company yesterday in U.S. Bankruptcy Court in Los Angeles. IndyMac said it has less than 50 creditors, including law and accounting firms and other banks, none of whose outstanding claims were listed.
IndyMac was seized by U.S. regulators on July 11 after a run by depositors left the mortgage lender strapped for cash. The Federal Deposit Insurance Corp. is running a successor institution, IndyMac Federal Bank, and regulators have said they intend to eventually sell the seized bank.
William Isaac, former FDIC chairman from 1981 to 1985, said the bankruptcy was expected and won't affect the bank's operations. ``The bank was the major asset, so once the bank was seized the fate of the parent company was probably sealed,'' he said in a telephone interview.
The FDIC ``has been in sole possession custody and control of all of the books and records of'' IndyMac Bancorp and the court filing was made without access to information that bankruptcy laws typically require, Chief Executive Officer Michael W. Perry said in court papers.
Schumer Criticism
While banks are prohibited from filing for U.S. bankruptcy protection, bank holding companies aren't. Perry is Pasadena, California-based IndyMac Bancorp's sole remaining employee, according to the filing. The company has $50 million to $100 million in assets.
IndyMac Bancorp racked up almost $900 million in losses as home prices tumbled and foreclosures hit records. California ranked second among U.S. states, with one foreclosure filing for every 192 households in June, 2.6 times the national average.
IndyMac came under fire in June from U.S. Senator Charles Schumer, who said lax lending standards and deposits purchased from third parties left it on the brink of collapse. In the 11 business days after Schumer explained his concerns in a June 26 letter, depositors withdrew more than $1.3 billion, the Office of Thrift Supervision said.
FDIC's Costs
IndyMac was the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC. The failure will cost the federal deposit insurance program that repays customers when a bank fails about $4 billion to $8 billion, the FDIC said in a statement last month.
The company is represented by the law firm Alston & Bird LLP in the bankruptcy case.
The company proposed that its first creditor meeting be held on Aug. 28. Creditors listed in its petition include Ernst & Young LLP, the accounting firm, law firm Alston & Bird, and JPMorgan Chase & Co.
The case is In re IndyMac Bancorp Inc., 08-21752, U.S. Bankruptcy Court, Central District of California (Los Angeles).
Now in Chapter 7 Bankruptcy liquidations. Might be interesting to see how their assets are priced, and what that does to the rest of the market.
This post is a 100% natural organic product.
The slight variations in spelling and grammar enhance its individual character and beauty and in no way are to be considered flaws or defects
I'm not sure why people choose 'To Love is to Bury' as their wedding song...It's about a murder-suicide
- Margo Timmins
When it becomes serious, you have to lie
- Jean-Claude Juncker
IndyMac Bancorp Files for Liquidation After Seizure (Update4)
By Jeff St.Onge and Tiffany Kary
Aug. 1 (Bloomberg) -- IndyMac Bancorp Inc., once the second-largest U.S. independent mortgage lender, filed to liquidate its remaining assets three weeks after its bank was seized by U.S. regulators and put under other management.
IndyMac's liabilities are between $100 million and $500 million, according to the Chapter 7 filing by the bank holding company yesterday in U.S. Bankruptcy Court in Los Angeles. IndyMac said it has less than 50 creditors, including law and accounting firms and other banks, none of whose outstanding claims were listed.
IndyMac was seized by U.S. regulators on July 11 after a run by depositors left the mortgage lender strapped for cash. The Federal Deposit Insurance Corp. is running a successor institution, IndyMac Federal Bank, and regulators have said they intend to eventually sell the seized bank.
William Isaac, former FDIC chairman from 1981 to 1985, said the bankruptcy was expected and won't affect the bank's operations. ``The bank was the major asset, so once the bank was seized the fate of the parent company was probably sealed,'' he said in a telephone interview.
The FDIC ``has been in sole possession custody and control of all of the books and records of'' IndyMac Bancorp and the court filing was made without access to information that bankruptcy laws typically require, Chief Executive Officer Michael W. Perry said in court papers.
Schumer Criticism
While banks are prohibited from filing for U.S. bankruptcy protection, bank holding companies aren't. Perry is Pasadena, California-based IndyMac Bancorp's sole remaining employee, according to the filing. The company has $50 million to $100 million in assets.
IndyMac Bancorp racked up almost $900 million in losses as home prices tumbled and foreclosures hit records. California ranked second among U.S. states, with one foreclosure filing for every 192 households in June, 2.6 times the national average.
IndyMac came under fire in June from U.S. Senator Charles Schumer, who said lax lending standards and deposits purchased from third parties left it on the brink of collapse. In the 11 business days after Schumer explained his concerns in a June 26 letter, depositors withdrew more than $1.3 billion, the Office of Thrift Supervision said.
FDIC's Costs
IndyMac was the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC. The failure will cost the federal deposit insurance program that repays customers when a bank fails about $4 billion to $8 billion, the FDIC said in a statement last month.
The company is represented by the law firm Alston & Bird LLP in the bankruptcy case.
The company proposed that its first creditor meeting be held on Aug. 28. Creditors listed in its petition include Ernst & Young LLP, the accounting firm, law firm Alston & Bird, and JPMorgan Chase & Co.
The case is In re IndyMac Bancorp Inc., 08-21752, U.S. Bankruptcy Court, Central District of California (Los Angeles).
Now in Chapter 7 Bankruptcy liquidations. Might be interesting to see how their assets are priced, and what that does to the rest of the market.
Indymac's scumbag underwriting guidelines aside, Chuck Schumer is a douche. A sitting us Senator makes a public statement that a bank is about to collapse in the midst of a crisis like this is tantamount to yelling fire in a movie theater.
"This business will get out of control. It will get out of control and we’ll be lucky to live through it.” -Tom Clancy
Col. Crackpot wrote:Indymac's scumbag underwriting guidelines aside, Chuck Schumer is a douche. A sitting us Senator makes a public statement that a bank is about to collapse in the midst of a crisis like this is tantamount to yelling fire in a movie theater.
I think you'll find that there's nothing wrong with shouting fire when the place is on fire...veritas is a lovely defense.
"Prodesse Non Nocere." "It's all about popularity really, if your invisible friend that tells you to invade places is called Napoleon, you're a loony, if he's called Jesus then you're the president." "I'd drive more people insane, but I'd have to double back and pick them up first..." "All it takes for bullshit to thrive is for rational men to do nothing." - Kevin Farrell, B.A. Journalism. BOTM - EBC - Horseman - G&C - Vampire
