Your Estate

Today the FDIC announced it has entered a letter of intent to sell IndyMac to IMB HoldCo, LLC, a thrift holding company controlled by IMB Management Holdings LP, a limited partnership, for approximately $13.9 billion. 

"The current economic climate is challenging for selling assets, but this agreement achieves the goals that were set out by the Chairman and Board when the FDIC was named conservator of IndyMac in July," said FDIC Deputy Director James Wigand, the lead negotiator for the transaction. "Unfortunately, as expected, IndyMac’s liability structure, combined with aggressive real estate lending in California, had a significant impact on losses."

IMB HoldCo is owned by a consortium of private equity investors including Dune Capital Management, J.C. Flowers & Co., Paulson & Co., MSD Capital, L.P., Stone Point Capital, SSP Offshore LLC, and SILAR MCF-I LLC.  To learn more about each of the companies click here for the FDIC’s fact sheet. (FYI - MSD Capital, L.P = Michael Dell’s private equity company)

According to the press release, the transaction is expected to close in late January or early February, at which time full details of the agreement will be provided. It is estimated that the cost to the FDIC’s DIF for resolving IndyMac Bank will be between $8.5 billion and $9.4 billion, in line with previous loss estimates. Costs include prepayment fees of $341.4 million to the Federal Home Loan Bank of San Francisco, on the payoff of $6.3 billion in FHLB advances.

"It is unfortunate that many of the banks that have failed last year had a heavy reliance on Federal Home Loan Bank advances," Bovenzi said. "These secured borrowings and the associated prepayment penalties have the effect of increasing the costs to the FDIC and to uninsured depositors."

Personally, I’m just happy to see this done, congrats to everyone at Financial Freedom.  I’m trying to get an interview with executives at FF, if any employees can help with this please let me know.

FDIC Board Approves Letter of Intent to Sell IndyMac Federal

Bankrate published an article earlier this week about the Housing and Economic Recovery Act and what it means for reverse mortgages.  In New rules rev up reverse mortgages, journalist Dana Dratch writes that the housing law has raised the ceiling on the amount of money seniors can obtain from a reverse mortgage and lowered the fees charged for the loan. 

The new law also allows retirees to purchase a home and take out a reverse mortgage in one transaction.  The HECM for purchase is meant to help retirees who want to get into a property that “better suits” their needs, says Darrly Hicks, vice president of communications for the National Reverse Mortgage Lenders Association.  "The intention of the program is to create a greater sense of flexibility," Hicks says.

The article also encourages people to analyze a reverse mortgage the same way you would any financial move that involves the roof over your head: carefully.  "It can be a good thing for an older retiree who is house-rich and cash-poor," says Eric Tyson, author of "Personal Finance for Dummies."

And that seems to be exactly who is using them, according to Bronwyn Belling, reverse mortgage specialist for the AARP Foundation. "Your typical borrower is a 73- or 74-year-old who has lived in the home a long time, seen a lot of appreciation but is having trouble making ends meet," Belling says.  However, reverse mortgages are not the automatic answer for everyone. "These loans work very well for some people and not so well for others," she says.

To read the rest of the article click the link below.

New rules rev up reverse mortgages (Bankrate)

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Well, it’s been more than 24 hours since the world ushered in 2009. How many of your New Year’s resolutions have you broken? Or maybe you’re one of those people who, after years of “resolving” and perhaps not following through, have just given up making resolutions. You can’t break what you don’t make!

Often resolutions are geared inward: exercise more or just exercise, lose weight, quit smoking, stop procrastinating, read more books, watch less TV, get out of debt, etc. We have the best intentions: We join a gym. We vow to get down to the basement and use that treadmill, instead of hanging our delicates from the handlebars. We get a library card. We give up cable. (Wait, let’s not get ridiculous!) We freeze our credit cards in ice cube trays or even cut up a few. For many, there is this mindset that at the beginning of every new year, we need to re-evaluate our lives and make changes.

May I suggest something? Instead of resolving something once a year, why not narrow it down to a weekly or daily event? Short-term goals are more often easily attained. It can be so daunting to think about changes in terms of a whole year. As the psychiatrist told Bob in the movie What About Bob?, “Baby steps, just take baby steps.”

Aside from a narrower time frame, how about reaching outward with our goals? Perhaps starting with family: Eat more meals at the table. Set aside an evening every week or two for just family time, playing games, watching a video, reading those books. My sister’s children are all grown, but a couple of years ago she established Thursday night meals at her house. Kids and grandkids come when they can, and it’s amazing how each works at clearing their schedule to be together.

Other ideas would be: volunteering monthly at a women’s shelter or rescue mission; putting a stronger emphasis on recycling and making a point to get recycled items to a center on a monthly basis; getting involved in an adult literacy program at a local school or library; helping others learn the joy of reading or offering your time as a tutor for struggling students.

I’m sure there are countless ways to reach out and help others on your block, neighborhood or community. I encourage you to think outside your normal resolution box and begin by saying, “Therefore Let It Be Resolved … __________. ” You fill in the blank and enjoy the remainder of 2009 fulfilling your New Year’s resolutions.

Posted by Sharon Walker