Industry News

IndyMac Bancorp laying off 400 employees

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IndyMac Bancorp Inc. is laying off 400 employees around the nation after second-quarter loan volumes fell 12 percent from the previous quarter. "The reality is that the mortgage market continues to be very tough right now, and we recognize that we must take action in order to protect our business and remain competitive," Chief Executive Officer Mike Perry said in an e-mail to employees that was posted on the company's official blog. The layoffs represent 4 percent of the company's workforce, and are taking place mainly in operations and enterprise process and technology (EPAT). Some employees in centralized and regional mortgage operations where IndyMac has excess capacity are also losing their jobs, Perry said, in positions ranging from customer account managers to funders and post closers. IndyMac has a "generous" severance package that will provide the laid-off workers with two weeks to 12 months of pay, he said. The layoffs will save IndyMac $30 million a year after a $6.5 million...