Indymac Calls CRL Report a ‘Hit Piece’

July 2, 2008 No Comments »


Indymac responded to a report conducted by the Center for Responsible Lending released earlier this week, calling it a “hit piece” and “shoddy journalism at best.”

The Pasadena, CA-based mortgage lender noted that the CRL report relied upon “unsubstantiated anecdotal evidence” arising from pending lawsuits (one of which the CRL is a part of) and peeved former employees.

“In fact, the CRL never contacted anyone at Indymac to check on any of the facts they assert or to get our response on any of the issues they have raised,” said Communications Director Grove Nichols on the company’s blog.

Nichols didn’t tackle any of the claims individually, but he did cite the fact that the company’s borrower success rate over the last 15 ½ years has been 97.5 percent, with about 43,000 foreclosures resulting out of roughly 1.7 million home loans issued.

Additionally, he claimed that the majority of its peak-time 10,000-strong workforce would have called their Indymac experience a positive one, and the 19 ex-employees who felt otherwise were likely just stirred up by trial attorneys.

In closing, Nichols noted that Indymac was working to navigate through the mortgage crisis like any other major bank and focused on helping borrowers, while resisting the potential for being sidetracked by “attacks” from entities like the CRL.

In related news, CFO A. Scott Keys resigned effective June 30, after going on medical leave two months earlier, according to an SEC filing.

The company said the resignation was not related to any concerns or disagreements regarding the company’s financials.

Shares of Indymac climbed 9 cents, or 13.85%, to 74 cents during the Tuesday trading session.

(photo: pleeker)

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