American Banker (08/01/08) P. 1; Berry, Kate
While the Federal Deposit Insurance Corp. hopes to sell all the assets of failed IndyMac Bank to a single buyer, increased interest in the thrift's Financial Freedom Senior Funding Corp. unit has analysts talking about the possibility of a separate deal. The reverse mortgage lending arm services 150,000 accounts and has attracted the attention of insurance companies interested in expanding the retirement products they offer. However, experts point out several downsides to the acquisition--including the need for nonbank purchasers to obtain lending licenses in every state, the need for purchasers to assume the bank's riskier mortgage assets if the regulator pushes for a single sale and the impact of declining home values and rising interest rates on the reverse mortgage market. Market observers believe Massachusetts Mutual Life Insurance Co. is interested in acquiring Financial Freedom.
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