Industry News

IndyMac earnings fall 57%

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Alt-A lender IndyMac Bancorp Inc. saw second-quarter earnings fall 57 percent from a year ago, to $44.6 million, thanks to higher credit costs and lower profit margins. Single-family mortgage production for the second quarter actually grew by 12 percent over last year, to $22.5 billion. But IndyMac was able to sell only 90 percent of the loans it produced during the quarter, totaling $20.2 billion, for a $101 million gain on sale. That compares with the $201.7 million gain on the sale of $19.4 billion in loans in the same quarter last year, or 97 percent of all loans produced. IndyMac was also forced to repurchase $219 million of loans during the quarter, mainly due to early payment defaults, compared with $48 million in the second quarter of 2006. So far this year, IndyMac has been forced to repurchase $443 million in loans, compared with $62 million at the same time last year. Provisions for loan losses were boosted to $27.9 million for the first half of 2007 compared with $6.1 m...