If you’re one of the millions who have not had any luck getting a modification of their mortgage, especially one through Indymac (Now called One West) or Bank of America (Now called Screw You, We’ve Got All The Fed’s Money And We Don’t Need You), you’re not alone. According to an article on CNN, OneWest has modified 3,605 loans under the president’s program and 14,570 mortgages under the FDIC and other initiatives between March and July. This compares to 16,158 loans adjusted under the FDIC between September and February. See the article here.
Indymac Emerges as OneWest- The Billionaires Already Profit!
Exactly a year ago a group of investors acquired the assets of collapsed mortgage lender IndyMac Bank from the federal government for about $1.5 billion and renamed it OneWest Bank. The OneWest ownership roster reads like an excerpt of the Forbes 400. It includes J.C. Flowers & Co., an investment firm run by former Goldman Sachs Group Inc. banker J. Christopher Flowers; Paulson & Co., the large hedge fund; MSD Capital, which invests the fortune of computer mogul Michael Dell; and a fund controlled by famed speculator George Soros.
OneWest is already generating hefty profits. For the six months ended Sept. 30th, it posted net operating income of about $700 million, according to filings with the FDIC. In 2007 IndyMac, saddled by troubled mortgages, posted a $614 million loss. (This comes from an article in the Wall Street Journal)
So, to summarize, the federal government (that’s you and me), bail out Indymac. The executives who’s judgement put Indymac in such peril make millions. Then the Federal government sells Indymac to another group of investors who manage to turn a massive profit on the sale immediately. All the while regular Americans continue to suffer and Indymac borrowers cannot get loan modifications done.
If they’re able to turn such a profit already, maybe they don’t need the loans in the portfolio of assets they purchased to be modified. I mean, if they’re already making a massive profit with all these loans non-performing….what kind of profits would they make if the loans were modified and performing?
If you have an Indymac loan and need assistance with foreclosure or modification contact my office at
