IndyMac has been in the news lately as one of the many banking institutions that is poised to fail, according to many Internet types that seem to know everything about everything. Even the talking heads on the cable news outlets forecast death and dismemberment for these institutions.
My good friend is in upper management (a regional executive... but I'm not sure of his title) for IndyMac and I cringed as I asked him how things were for him... such as job security right now. His answer somewhat surprised me. He said that his orders have changed a bit and he will be part of a group that will be focused on approaching 'performing' borrowers with ARM's (adjustable rate mortgages) and other sorts of creative financing programs to get the borrowers off those (what could be) toxic loan programs and into a locked long term loan. He says the task is very large (over $6 Billion dollars worth of loans in just the portfolio he will be helping to manage).
However, he is excited about the task and is positive that it will make a difference. He also told me to check out a new company that is being set up to do basically the very same thing.
Here is a link to an article that appeared on Monday about new start up PennyMac, or Private National Mortgage.
From the article...
PennyMac will raise capital from private investors, acquire loans from financial institutions seeking to reduce their mortgage exposures, and seek to create value for both borrowers and investors through loan servicing.
Sounds simple (I'm sure there are complications and specifics both I and the article are leaving out), and it sure sounds tons better than a government bailout.
Lastly, it does sound like there will be plenty of money making opportunities and even profit margins along the way. We shall see.
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