Indymac says we're shutting down loans

I was watching CNBC at lunch and saw that Indymac's stock was trading under a $1. So I assumed something was up. Than when I got back to the office I saw an email form my Indymac rep saying he'd been let go because of the news.

I google for news, and discovered they were shutting down lending. The excerpt below is Michael W. Perry, Chairman and Chief Executive Officer, IndyMac Bank.

....As a result of the above, we have made the difficult decision, effective July 7, 2008, that we will no longer accept any new loan submissions or rate locks in our retail and wholesale forward mortgage lending channels, except for our servicing retention channel. We plan to honor all of our existing rate-locked loans and will continue to fund these loans in the coming weeks. While the managers and employees in these units have worked incredibly hard, these units are not currently profitable due to the continuing erosion of the housing and mortgage markets. At the same time, these operations take up significant balance sheet capacity and "feed" growth in the servicing asset, an asset we need to shrink given its size relative to our existing capital. ...

Lender's are still having a tough time, and it may be another 1-2 quarters before they've felt the worst of it.

Yes, that is optimism. I'm feeling like the worst will be over in 6 months. Consider buying the financial stocks after this quarter's news or next.

good luck and work with a loan officer that's got his pulse on the market.