IndyMac said late yesterday that it sold $335 million in prime jumbo loan and Alt-A hybrid adjustable-rate mortgages on April 1 in its first trade of private label securities (non-agency) since February 6.
The company retained roughly $100 million in bonds, 98.3 percent of which are investment grade rated and sold $235 million in AAA-rated mortgage-backed securities.
The Pasadena, CA-based mortgage lender said the sale resulted in a $2 million pre-tax loss, but was a key part of the company’s “balance sheet reduction/capital generation strategy.”
The company noted that other investors have expressed interest in similar securities and that they will continue to pursue like transactions, which is clearly good news as it indicates the secondary market is alive and kicking.
IndyMac, soon to be the largest independent mortgage lender in the nation, is expected to report a first-quarter loss when it announces earnings next month.
Shares of IndyMac were down 10 cents, or 2.13%, to $4.59 in early afternoon trading on Wall Street.
In related news, Citigroup is reportedly planning to sell $12 billion in loans at a loss to Apollo Management LP, Blackstone Group LP and TPG Inc.