IndyMac firing half its employees: Prospect Mortgage gets retail branches

Following the news that IndyMac is firing half of their employees, we have also learned that the lender is to sell most of their retail mortgage branches to Prospect Mortgage. According to an e-mailed statement from Prospect, the new deal will give them more than 60 branch offices along with 750 employees.

With all the recent troubles IndyMac Bancorp Inc., has had to stop its lending as the losses were building up quickly while capital deteriorated, the U.S. mortgage company has blamed Senator Charles Schumer for “elevated levels of deposit withdrawals.”

As we reported earlier IndyMac are having to fire half of their staff and are now working with regulators, in the hope of coming up with a new business plan after they failed to raise capital. If the demise of IndyMac does come to fruit, then this would be the biggest bankruptcy since American Home Mortgage Investment Corp, in August 2007.

IndyMac are having a tough time on the stock exchange, as of 4 p.m. their shares fell 27 cents to 44 cents, this has now reduced the value to $44 million, back in the middle of 2006 IndyMac was worth more than $3.4 billion.

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