IndyMac Back to Jumbo Loans

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IndyMac Bancorp said Wednesday that it will resume issuing “jumbo” home loans after temporarily halting their sales amid turmoil in the mortgage market.


The Pasadena-based lender stopped selling jumbos, which are mortgage loans issued to people with good credit but are larger than $417,000. Fannie Mae and Freddie Mac do not buy loans larger than that amount, which means lenders must sell jumbos on Wall Street particularly difficult now or lend the money themselves.


IndyMac said because investors are still hesitant to buy jumbo loans the company will keep the loans in its own portfolio. The borrowers for these loans pay high interest rates, IndyMac said, making them more attractive because borrower’s income is documented for these loans, IndyMac said.


Shares in IndyMac gained 91 cents, or 4 percent, to $23.41 in afternoon trading Wednesday on the New York Stock Exchange. Shares have gained 33 percent over the last week.

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