Industry News

IndyMac posts first annual loss in company’s history

Alt-A lender projects return to profitability in 2008
Published on Feb 12, 2008

Last year "was a terrible year for our industry, for Indymac and for you, our owners," IndyMac Bancorp Inc. Chief Executive Officer Michael Perry said today in a letter to shareholders as the alt-A lender reported a $509 million fourth-quarter loss. Increased provisions for future credit losses drove IndyMac's fourth-quarter loss, with credit reserves growing 71 percent from the previous quarter, to $2.4 billion -- a more than four-fold increase from a year ago. IndyMac also reported losing $321.8 million on the sale of $13.4 billion in loans during the fourth quarter. "As I write this note, over 225 independent mortgage companies have failed and over 100,000 jobs have been lost in our industry," Perry said in the letter, which also noted the pending sale of Countrywide Financial Corp. to Bank of America, and billions of losses at Fannie Mae and Freddie Mac. IndyMac's losses for the year totaled $609 million, the first annual loss in the company's 23-year history. Althou...

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