IndyMac: What Went Wrong: How an “Alt-A” Leader Fueled Its Growth With Unsound and Abusive Mortgage Lending
CRL has uncovered substantial evidence that IndyMac Bank engaged in unsound and abusive lending during the mortgage boom, routinely making loans without regard to borrowers’ ability to repay.
CRL interviews with former employees and lawsuits in 10 states indicate that IndyMac:
- pushed through loans based on bogus appraisals and income data that exaggerated borrowers’ finances,
- worked hand-in-hand with mortgage brokers who misled borrowers about their rates and other loan terms and stuck them with unwarranted fees, and
- treated many elderly and minority consumers unfairly.
In interviews and court documents, 19 former employees describe an atmosphere where the hunger to close loans ruled.
Published: June 30, 2008