|IndyMac Completes Financial Freedom Acquisition
Reverse lender sold by Lehman Brothers
July 19, 2004
By MortgageDaily.com staff
|IndyMac Bancorp, Inc. has now become the largest provider of reverse mortgages in the U.S.
The Pasadena, Calif.-based holding company announced completing its acquisition of Financial Freedom Holdings Inc. Friday.
IndyMac, which said in May it would pay $80 million for the reverse lender, acquired Financial Freedom from Lehman Brothers Bank, FSB and its affiliates.
“The acquisition of Financial Freedom makes us the largest provider of reverse mortgages in the U.S. and illustrates our strategy of growing market share through niche products,” said IndyMac chairman and CEO Michael W. Perry in the announcement. “With the maturing of the baby boom generation and the appreciation of home prices, the reverse mortgage market has the potential for very healthy growth in the years to come.”
IndyMac said the acquisition is expected to be a few cents dilutive to its earnings in the third quarter due to purchase accounting issues, and accretive thereafter.
Lehman to Sell Financial Freedom
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