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Pasadena Based IndyMac Bank Gets Taken Over by the FDIC

By
Real Estate Agent with Coldwell Banker

 

Just a quick prelude to the news (Government shuts down mortgage lender IndyMac, AP), in our dealings with lenders during this roller coaster ride in Real Estate, we've heard quite a few odd excuses and tighter regulations due to the "credit crunch." Nothing compares to the following reasoning: as we neared the close of escrow, we received an email detailing that a loan (which had already been approved) was denied due to the appraisal coming in higher than the purchase price. No logic behind that, never have we or any of our colleagues heard of such a thing. Guess who sent us the email. IndyMac. Unfortunately, a clear sign that they were having some problems.

Friday came and the FDIC stepped in, seizing their assets (US regulators take control of IndyMac, Pasadena Star News), and will reopen Monday as IndyMac Federal Bank, catering to what will be a number of unhappy customers (especially those with more than $100,000 in the bank, which is the cap for what is insured by the FDIC). So what will the turmoil striking this Pasadena based bank bring for Pasadena residents and Pasadena Homes for Sale, hopefully nothing more than a few lost jobs (unfortunate as it may be), I don't see it greatly impacting the housing market, Pasadena is strong and has much to lean on, and although IndyMac was a strong player at one time, we have other outlets to get loans from.

etcList
The $5 trillion mess (Fortune)
Senate passes mortgage rescue plan (AP)

theMarket
Investors set for another tough earnings season (AP)