IndyMac stops new mortgage loans, to cut workforce by half
The move comes as the lender works with U.S. banking regulators, who have determined the company is no longer well capitalized and have asked it to submit a new business plan designed to improve its financial footing, IndyMac Chairman and Chief Executive Michael W. Perry said in a letter to shareholders.
"In light of the current environment and related deterioration of our financial position since last quarter, we have been working closely with our federal banking regulators with respect to the actions that they and we must take to meet our mutual goal of keeping IndyMac safe and sound through this crisis period," Perry wrote.
In the letter, Perry said the Pasadena-based holding company for IndyMac Bank has not succeeded in raising additional capital and does not expect to succeed until the housing and mortgage markets are more stable.
Perry said cutting back nearly all new loan production would be the best way to shrink IndyMac’s balance sheet and maintain sufficient liquidity.
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