Now that the government has taken over IndyMac Bank, what happens to all their customers? That’s the question I’m sure thousands of people are asking themselves today. With the housing market already in a downward spiral, the seizure of one of the nation’s top mortgage lending companies only adds to the fear and confusion everybody in the real estate business is feeling, not to mention all the homeowners who got their mortgage through IndyMac. Even worse is the fact that IndyMac also has thousands of customers who bank with them.
For those of you who have bank accounts with IndyMac, you will still be able to access your account by phone or the internet and you will still be able to use your ATM cards, debit cards and checks. Although the bank is closed over the weekend, they plan on opening up Monday. While this is shocking news to many in the housing market and real estate industry, a lot of people that do business with IndyMac may have seen the writing on the wall. After IndyMac slashed over half their jobs and their stock went from as high as $50 per share to 28 cents, about $100 million depositors began withdrawing their money.
According to John M. Reich, director of the OTS, “This institution failed Saturday due to a liquidity crisis”, and “although this institution was already in distress, the deposit run pushed IndyMac over the edge.” So, it looks like IndyMac is yet another victim of the housing market crash. There appears to be mass hysteria surrounding real estate, which has now spread out to every aspect of our financial lives. With gas prices rising, the cost of groceries going up and jobs being cut, I can’t say that I blame anybody who feels their money may be safer tucked underneath their mattresses.
But for those of you who still have your money tied up in IndyMac, the FDIC has set up a toll-free phone line at 866-806-5919, and a page on its Web site for bank customers to keep up with what is happening and what they need to do. But customers of IndyMac are desperate to find out what will happen with their money.
Depositors’ accounts at IndyMac are insured by the FDIC’s Deposit Insurance Fund up to the statutory limits. Customer questions regarding the institution, including questions about federal deposit insurance coverage, should be directed to the FDIC at 1-866-806-5919. The hotline’s recorded message explains the bank’s status. The message states that Internet banking has been suspended for the weekend, but online banking should be available Monday. The OTS has appointed the FDIC as conservator of the newly chartered successor institution and will transfer most of the assets and liabilities of IndyMac to the new thrift.
Now I know this still doesn’t answer all of your questions, but I get the feeling the FDIC wants to try and ensure they don’t lose anymore money either. As for the people who have outstanding mortgage loans with IndyMac, trust me they’ll find somebody for you to give your money to. While this news is less than helpful for the already pressured housing market, it could actually end up having a silver lining for those of you who are looking to purchase real estate. Foreclosures don’t do the mortgage lender any good, which means they want to get rid of their overstock and fast. That usually means pretty good sales. I know it doesn’t look good folks, but I strongly believe we are on the cusp of a turnaround.
If you bank with IndyMac, you should call the hotline for up-to-date information. If you are thinking about looking around for a good deal on a home, visit Mahler & Associates for all your appraisal needs.