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IndyMac Acquisition Not Likely to Affect the Bank’s Multifamily Business
Published: July 22, 2008
By Anuradha Kher, Online News Editor
Northbrook, Ill.--After Prospect Mortgage completes the acquisition of IndyMac, the bank’s multifamily loan business will likely remain intact, according to Bill Hughes, SVP and managing director of Marcus & Millichap Capital Corp. “I would think the buyer wants to keep that division intact. Why would they take IndyMac on if they did not want to continue with the bank’s services,” Hughes tells MHN. Though it is too early to tell the impact of this acquisition and what the company will do going forward, closing down multifamily does not seem like a possible next step.
Prospect Mortgage will acquire the majority of Indymac's retail mortgage branches by purchasing up to 80 of Indymac's loan offices nationwide. Through this transaction, Prospect will hire at least 750 employees from Indymac. The acquisition is scheduled to close on Aug. 7.
“IndyMac was not perceived as a big multifamily lender because they were priced quite high,” says Hughes. The bank was not a Fannie Mae DUS lender and therefore, its closing or acquisition will make no difference to the Government Sponsored Enterprise, Hughes adds.
However, Hughes goes on to say that watching IndyMac, another source go, has not been a positive for the multifamily industry.
According to IndyMac Federal Bank, loans continue to be funded under original terms, conditions and timelines. Indymac loan officers and personnel who are moving to Prospect will continue to work directly with their borrowers. John Johnston and Ron Bergum of Indymac will remain leaders of the retail branch group following the closing and report to Mark Filler, CEO of Prospect Mortgage.
"The FDIC has confirmed that the Indymac acquisition is moving forward as planned,” says Filler. “The Indymac branches included in the acquisition are funding loans in-process and originating new loans, and will remain open for business through the closing. Borrowers who had loans submitted prior to the acquisition notice have received forms and instructions to facilitate a smooth transfer of their files.”
With completion of the Indymac transaction, Prospect Mortgage will become one of the largest independent retail mortgage companies in the country.
