IndyMac Bank, Pasadena, Calif., has reported an agreement to buy the nation's largest reverse mortgage lender, Financial Freedom Holdings Inc., Irvine, Calif.Lehman Brothers Bank FSB, New York, owns the majority of Financial Freedom, with the remaining shares owned by James Mahoney, Financial Freedom's chief executive. IndyMac said it has agreed to acquire Lehman Brothers' 93.75% equity stake for approximately $80 million. Mr. Mahoney will retain his share of the company. He and other members of senior management have entered into employment agreements with IndyMac. The company said it would have a permanent capital deployment of $50 million to $60 million. Those funds could come from a common stock offering or the issuance of trust preferred securities. Financial Freedom originates the Federal Housing Administration's Home Equity Conversion Mortgage and Fannie Mae's Home Keeper product as well as its own proprietary product. Approximately 93% of the loans are HECMs that were sold to Fannie Mae. Financial Freedom's volume in 2003 totaled $976 million.
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While home lenders are seeing a decrease in issues coming through mobile channels, phone fraud spiked last year, accounting for 28% of losses, a new report found.
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The massive mortgage business saw a first quarter profit mitigated by nearly $300 million in hedging losses.
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The Consumer Financial Protection Bureau has seen excessive property-inspection charges, fees that loan mods should eliminate and improper line-item labels.
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Michael Tannenbaum, whose experience in the financial services industry spans over 15 years, has a track record of helping companies scale and grow.
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A majority of consumers earning more than $100,000 annually said they were concerned about their own ability to purchase a home, demonstrating how affordability issues are impacting those at many socioeconomic levels, the University of Michigan study found.
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The nonbank's results add to other indications that the first quarter's "higher for longer" rate scenario had an upside for efficient servicing operations.
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