Loans, Debt & Credit - View Single Post

IndyMad · 08-31-2009, 05:28 PM

Update as of 8/31. Spoke to OneWest, now own IndyMac loans. As of 8/11 they have stopped doing any loan modifications on loans over the $729,500 loan balance. So no jumbo loan mods will be entertained. So if they have managed to string you along for about 10 months, with promises that you are approved, paperwork will arrive in 3-4 weeks, or you qualify, be very skeptical. The deal they seem to have cut with the Feds, is OneWest takes the first 20% of the losses, the Fed's have backed up the next $10Billion in losses. There is also the rumor that OneWest has taken out insurance on their potential losses. So if they force you into BK, then their insurance kicks in and the additional loss over the 20% is covered by the Feds. In this somewhat twisted world, it seems that they have more incentive to force you into BK, as they do not lose anything ( but maybe insurance premiums). They will loose up to the first 20% if they go ahead and actually modify your loan, reduce you payments or principal etc, but will loose little if they force you into BK.
Interesting report as of August 19th, they announced $182Million in earnings for the past quarter. Since the investors only put up about $1.3Billion, they just got about 15% back in the past 3 months, while some of us are looking at BK or short sales or who knows?

Not the best news but I do think that for loans under the $729,500 they will have to keep the appearance of working with the homeowners so the Feds don't look too closely at this sweetheart deal.

Best of luck to you all. I am consulting an attorney, about options.

08-31-2009, 05:28 PM	#3 (permalink)
IndyMad Junior Member Join Date: Apr 2009 Location: Northern CA Posts: 4 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Jumbo loan modification question Update as of 8/31. Spoke to OneWest, now own IndyMac loans. As of 8/11 they have stopped doing any loan modifications on loans over the $729,500 loan balance. So no jumbo loan mods will be entertained. So if they have managed to string you along for about 10 months, with promises that you are approved, paperwork will arrive in 3-4 weeks, or you qualify, be very skeptical. The deal they seem to have cut with the Feds, is OneWest takes the first 20% of the losses, the Fed's have backed up the next $10Billion in losses. There is also the rumor that OneWest has taken out insurance on their potential losses. So if they force you into BK, then their insurance kicks in and the additional loss over the 20% is covered by the Feds. In this somewhat twisted world, it seems that they have more incentive to force you into BK, as they do not lose anything ( but maybe insurance premiums). They will loose up to the first 20% if they go ahead and actually modify your loan, reduce you payments or principal etc, but will loose little if they force you into BK. Interesting report as of August 19th, they announced $182Million in earnings for the past quarter. Since the investors only put up about $1.3Billion, they just got about 15% back in the past 3 months, while some of us are looking at BK or short sales or who knows? Not the best news but I do think that for loans under the $729,500 they will have to keep the appearance of working with the homeowners so the Feds don't look too closely at this sweetheart deal. Best of luck to you all. I am consulting an attorney, about options.