Home Mortgages – Indymac Bank officially stopped taking new applications on both its wholesale and retail channels last week.  It plans to still close those loans which were issued commitments. 

Indymac had developed a reputation in the broker community for handling many different types of loans.  From conventional “A-Paper” loans to foreign nationals, to construction-permanent loans.  Their sister company, Freedom Financial is one of the leading originators of Reverse Mortgages in country as well. 

Wachovia, in the meantime, completed it’s dismantling of the World Savings lending platform.  They are no longer offering the signature World Savings Option Arm, and waiving pre-payment penalties on all  existing Option Arms on the books – inviting borrowers to please refinance and pay them off.  So if you have a World Savings ARM loan with a pre-payment penalty, you just caught a break! 

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World Savings for years was known as a portfolio lender that offered ARM loans to foreign nationals, and those with equity.  In fact, there was a time that if you needed a stated income loan, or a foreign national loan, they were one of the only games in town. 

For many years they offered primarily one product, the much maligned option ARM.   Prior to the widespread offering of these loans by many lenders, World Savings was one of the only lenders offering this flexible loan program.   World Savings representatives claimed that because of the way their ARM loan worked, they never had a borrower experience the dramatic payment increases from a “recast”. 

Craig Garcia is a Managing Member of Bridge Capital Lending, LLC. A mortgage and investment firm specializing in Investor Loans that Use Private Lenders that fund Hard Money Loans. Craig can be reached at 877-8GO-GREEN or 954-217-9518.

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