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Friday, April 20, 2007

IndyMac Tightens Standards

by Calculated Risk on 4/20/2007 08:15:00 PM

IndyMac provided an (pdf) Update on First Quarter Mortgage Loan Production today. Here are a couple of interesting tables.

IndyMac Loan TypesClick on graph for larger image.

This shows the breakdown of loans by documentation. Most of their loans fall into Type 2:

Borrower states income and documents employment and assets. Lender assesses income for reasonableness and verifies employment, assets, credit history and home value (by appraisal).
IndyMac Standards ImpactClick on graph for larger image.

The second image (two tables) shows the actual loan production in Q1 by documentation type, and the Proforma Loan Production had their new guidelines been in place on Jan. 1, 2007. Overall production would have declined by about one third. Type 2 loan production would have decreased from $13.161 Billion to $8.066 Billion.