Financial Freedom Has A New Owner!
by Jeffrey L. Bangerter
January 06, 2009
The Federal Deposit Insurance Corporation (FDIC) has announced the sale of failed S&L IndyMac to a new owner, IMB Management Holdings LP.
Included in the transaction is Financial Freedom, the number one reverse mortgage lender/home equity conversion mortgage (HECM) for seniors.
The FDIC says Financial Freedom is a reverse mortgage platform “with $1.5 billion of reverse mortgages and MSRs representing an unpaid principal balance of $20.2 billion” (MSRs = mortgage servicing rights).
For reverse mortgage borrowers and retired seniors the continuation of Financial Freedom should be seen as a positive event because more competition is always good for senior borrowers and Financial Freedom has been a major player in the reverse mortgage loan marketplace.
The purchase price will be roughly $13.9 billion.
The FDIC says it “has agreed to share losses on a portfolio of qualifying loans with New IndyMac assuming the first 20% of losses after which the FDIC will share losses 80/20 for the next 10% of losses and 95/5 thereafter.”
What this means in potential cash liabilities for the FDIC is unclear.
The new owners will also put in $1.3 billion in fresh capital.
In addition, the new owners will continue the FDIC’s existing loan modification/mortgage modification program and the FDIC will receive a majority of all cash flows generated from approximately $2 billion portfolio of construction and other loans.
We shopped 8 now 6 Reverse Mortgage Lenders and do most of our Reverse Mortgage business with Financial Freedom and they have always been honest and fair.
May they have continued success.