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April 28, 2006
Mortgage Business Lifts Profit at IndyMac
IndyMac Bancorp Inc. upped its profit to $79.8 million in the first quarter--a gain of 26 percent from a year earlier--due in large part to record mortgage production. The savings and loan's origination volume surged 72 percent for the first three months of this year, hitting a high of $20 billion and effectively doubling the Pasadena, Calif. company's slice of the U.S. home-loan pie. The growth comes at a time when the industry in general is being affected by a slowdown in residential lending and declining profit margins in the mortgage business. Friedman, Billings, Ramsey & Co. analyst Paul Miller says IndyMac thrived because of its decision to begin purchasing large bundles of loans originated and funded by others.
Posted by S. Germain at April 28, 2006 09:37 AM