IndyMac Bancorp, the holding company for IndyMac bank, has completed its acquisition of Financial Freedom Holdings, a majority-owned subsidiary of IndyMac Bank.
Michael W. Perry, IndyMac’s chairman and chief executive officer, said in a company statement that the acquisition would make IndyMac the largest provider of reverse mortgages in the United States.
Reverse mortgages allow homeowners aged 62 and older to convert home equity into cash. The product is becoming increasingly popular with senior citizens who want to supplement their retirement income for home maintenance and repair, healthcare funding, estate planning and discretionary purposes.
IndyMac expects the purchase of Financial Freedom to be a few cents dilutive to its earnings in the third quarter due to purchase accounting issues, and accretive thereafter.
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