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‘New IndyMac’ to continue loan mods

FDIC announces planned sale of failed bank

A group of investors who have agreed to put up $1.3 billion in cash to acquire IndyMac Bank are expected to continue an FDIC mortgage loan modification program that aims to help nearly 50,000 borrowers avoid foreclosure.The FDIC said it will continue to share losses on loans made by IndyMac and provide secured financing to the new owners, who are expected to acquire the failed bank's $16 billion loan portfolio and $6.9 billion in securities in late January or early February.The final cost of "resolving" the July 11 failure of IndyMac Bank will be between $8.5 billion and $9.4 billion, the FDIC said in announcing its intent to sell the bank to investors led by former Goldman Sachs Group Inc. partner Steven Mnuchin, now chairman and co-CEO of Dune Capital Management.The FDIC has agreed to share losses on a portfolio of qualifying loans with "New IndyMac," which will consist of a retail bank headquartered in Pasadena, Calif., and 33 branches located primarily in the Lo...

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