IndyMac Mortgages, will they close?

You've likely heard by now of the FDIC takeover of IndyMac Bank. This is bad news for IndyMac depositors (at least those with deposits in excess of the insured limit) and for IndyMac shareholders.

The big question for those of us in the real estate industry is whether or not IndyMac, or its successor entity, will honor IndyMac's outstanding loan commitments.

So far there is no clear answer. One IndyMac loan officer sent me an email from his vacation to say that "yes" the commitments would be honored. I heard of another case, however, where the FDIC placed additional conditions on the loan which will ultimately prevent it from closing.

For those of us with clients with IndyMac loan commitments, we'll have to wait it out through the weekend. I don't expect any definitive answers before Monday. I believe that even the IndyMac websites will be down until then.

Come Monday, information should be available from the following source, courtesy of the FDIC:

"VI. Loan Customers
If you had a loan with IndyMac Bank, F.S.B., you should continue to make your payments as usual. The terms of your loan will not change under the terms of the loan contract because they are contractually agreed to your promissory note with the failed institution. Checks should be made payable as usual and sent to the same address until further notice. For all questions regarding new loans and the lending policies of IndyMac Federal Bank, please contact 800-998-2900 or visit the IndyMac Federal Bank website at www.IndyMac.com."holders.

We'll see what happens. Meantime, I'll be checking with other lenders to see who would be well positioned to take over clients with IndyMac commitments and to quickly arrange for alternate financing.

Good luck, and feel free to give me a call if you have any questions.