Mortgage Daily

Published On: March 20, 2009
Jumbo Lender EmergesIndyMac re-emerges as OneWest Bank

March 20, 2009

By staff

The Federal Deposit Insurance Corporation has closed on the sale of IndyMac Federal Bank FSB at a huge loss. The new company will initially focus on jumbo mortgage originations.OneWest Bank FSB completed its acquisition of the failed thrift Thursday, according to an announcement late last night from newly formed thrift-holding company OneWest Bank Group LLC.

OneWest was organized by IMB HoldCo LLC — a consortium of private investors with ties to J.C. Flowers & Co. LLC, Paulson & Co., MSD Capital L.P., Stone Point Capital LLC, SSP Offshore LLC and SILAR MCF-I LLC.

In its own statement Thursday, the FDIC said 33 former IndyMac branches in the Los Angeles area would open today as OneWest branches. No branch closings were anticipated by OneWest — though future hirings are planned.

At the time IndyMac Bank F.S.B. was seized by the Office of Thrift Supervision on July 11, 2008, it was the biggest thrift failure ever. The FDIC, which was named receiver, operated the company as IndyMac Federal Bank FSB.

Pasadena, Calif.-based OneWest begins business with deposits of $6.4 billion, assets of $20.7 billion and $1.6 billion in newly injected common equity. The assets were acquired at a $4.7 billion discount and carried on the books at $16.0 billion.

Its mortgage servicing portfolio is $153.4 billion, and Financial Freedom Senior Funding Corp.’s reverse mortgage servicing portfolio is $21.3 billion.

As of Aug. 15, 2008, IndyMac employed 7,500 people. Today’s statements didn’t indicate headcount at the new entity.

“OneWest will operate as a regional bank, focused on deposits and conforming and jumbo mortgage lending for its retail customers in Southern California,” the new institution said. “OneWest will operate the national mortgage banking business acquired from IndyMac and continue to modify mortgages in accordance with the program created by the FDIC.”

The firm said it is exploring expanding its loan modification services to other institutions. It will continue the operations of Financial Freedom.

Steven Mnuchin was named chairman and chief executive officer of OneWest Bank Group, while Terry Laughlin was appointed CEO of OneWest Bank FSB. Laughlin has reportedly been in banking for three decades — holding positions at Merrill Lynch Bank & Trust, FleetBoston and Mellon Bank.

Moody’s Investors Service issued a statement indicating that no ratings actions will be taken on residential mortgage-backed securities that were impacted by the transfer of servicing from IndyMac to OneWest.

The FDIC retained about $2.8 billion in IndyMac assets for later disposition. It also agreed to a loss-sharing arrangement on the residential portfolio.

In all, IndyMac is expected to cost the FDIC’s Deposit Insurance Fund $10.7 billion.

OneWest profile
IndyMac profile

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