If you're a seller who is having problems negotiating a short sale or obtaining debt relief at IndyMac, consider the fact that IndyMac today says it is closing its mortgage business and laying off 3,800 employees, which is more than half of its workforce.
This means effective immediately it will make no new mortgage loans. IndyMac says it will honor its existing loan applications that have a locked-in interest rate, but borrowers who are relying on the lender to perform and fund pending loans might be feeling a little nervous these days. Those who haven't locked a rate are flat out of luck.
The bank has been struggling throughout this subprime upheavel, experiencing shrinking assets and regulatory pressures.
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