July 7th, 2008, 2:53 pm · 18 Comments · posted by Matt Padilla, Register Reporter and Blogger
Pasadena-based IndyMac Bancorp, which has operations in Irvine, said Monday that it will no longer accept home loan applications and is slashing its staff by more than half to 3,400 over the next couple of months. In a letter on its Web site, it said it failed to raise money and has been unable to sell loans at a profit.
It declined to comment beyond the letter or say how many workers in Orange County will be let go.
Once the largest lender to borrowers with nearly perfect credit, Indymac said it expects to post a loss for the second quarter that exceeds its Q1 loss of $184.2 million.
It will halt nearly all loans at retail offices and via mortgage brokers. It will still make reverse mortgages to seniors. That unit is based in Irvine and will retain 800 workers there and in Sacramento and Atlanta. IndyMac also will continue to refinance customers whose loans are currently serviced by IndyMac — and will retain 350 workers in that department, including some in Irvine.