Indymac Back to Pushing Mortgages

July 25, 2008 No Comments »

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Just weeks after Indymac Bancorp was seized by the FDIC and transformed into Indymac Federal Bank, the company is back to pitching home loans.

Their new website, located here, is supposedly offering all types of home loans, ranging from zero down financing options to jumbo loans, low and no documentation options, and even a pay option arm.

The bank’s so-called “FlexPay ARM” seems to be a negative amortization loan, a product virtually all other banks and mortgage lenders have stamped out for its rather toxic nature.

They even note that they’ve got loan programs for borrowers with “less than perfect credit,” and for those still looking for a property, they’ve got a massive REO inventory you can search through.

I must say it’s a bit odd that a recently failed bank would quickly re-open and offer a wide array of seemingly high-risk mortgage options, considering the very practice sunk the bank.

And it’s hard to believe many banking customers receiving the e-mail blasts promoting the new mortgage products will respond positively, given the fact that most were lining up outside Indymac branches days ago to withdraw their life savings.

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