Yesterday Indymac Bank (IMB) ceased accepting new loan files in both Retail and Wholesale.
They cited the usual rhetoric of the difficult financial marketplace and turbulent times.
They also cited, and this is the really important part. Lack of Liquidity.
"Yet in this environment, where either there are no bids for most of IMBâs mortgage loans and securities or the bid/ask spreads are abnormally wide, âfire-sellingâ assets would actually deplete capital further. "
Every large bank needs to be able "securitize" and "monetize" their mortgage assets. Indymac ran out of that ability. Distributed by Tubemogul.
