SCC Housing Market Blog

This article/question was posted on the Mortgage Lender Implode-o-Meter and I decided to post it here and discuss it because I've had dealing with IndyMac and other lenders and I'm pleased to see them sinking like lead boots to the bottom of the ocean. Unfortunately, the CEOs of these companies got filthy rich while all others lost their shirts. The post reads:

IndyMac shares are finally down to a mid-day low of $0.94 at one point. One of our sources states, "Pretty much we were told informally that if we did not get a capital infusion we would not make it and that we had a 50/50 chance of obtaining said infusion."

MY COMMENT:
But what about the infusion that the people needed when they sought loans through IndyMac's Owner Builder Programs in which IndyMac would not approve the loan unless the home buyer took out an additional so-called "permanent finance loan" or a "Loan To Value (LTV)" of up to 85%, although all the home buyer needed was a simple construction loan? IndyMac, and others, would not approve any construction loan unless you took financing that you did not need.

In addition, IndyMac, and others, would give "low doc" and "no money down" loans for any loan above $150k, but if you were of "modest income" and needed a loan for a modest home that cost under $100k you would need every document that exist on you plus a blood and DNA sample with 20% down. What the !

IndyMac is not our friend. They did not provide a service to the America people. They provided debt and slavery to the American people. They made it easier for you to get a half-million dollar loan than it is to get a $90k loan. And the government with its smoke screen companies like Freddie Mac, Fannie Mae, and Ginnie Mae would secure the high end loans but not the low end loans.

An infusion????? They don't need an infusion. They need to dissolve. Lets take'em off life support and pull the plug by demanding that they service people and not use us for long term profits.

Just my thoughts, what's yours?