IndyMac Lets You In on How Bad the Market has Become

Published: December 31, 1969, 7:00 pm

This is from an email communication to brokers regarding IndyMac’s new rate lock policy. For those unfamiliar with the term: a rate lock is a commitment by the lender to fund (or purchase) the originated loans at the terms agreed to in the lock. Usually locks can be extended for a small fee if they expire. Locks can be on a short-term 12 or 15 day lock or longer term locks ranging from 30-90 days. The longer the lock the more costly. From IndyMac: For all program areas discontinued on Friday, August 3rd (refer to Lending Guide Bulletin #07-29), 80/20 first and second liens, Closed-end Seconds, Single Spec Construction Loans, NonPrime (except Full Doc, Level 1++ and Level 1+, with decision credit scores > 620), Classic 12 MAT, FlexPay 12 MAT, and FlexPay 3/1 LIBOR ARM: the following ratelock policy will be in place. This policy will replace the current ratelock policy outlined in Lending Guide Section 2610. For any type of ratelock extension through e-MITS or

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