Update: Indymac now No. 265 on Implode-O-Meter site

The Mortgage Lender Implode-O-Meter website has been all over the Indymac story today, with numerous updates about the company's new plan to exit the mortgage lending business and slash 53% of its jobs. Here's a headline you won't see in tomorrow's papers: under the Implode-O-Meter's criteria, Indymac has now officially imploded. It is now No. 265 on the blog's list of imploding mortgage companies, which you can view here alphabetically. Other notables on the list:

1. Merit Financial (May 6, 2006)
35. New Century Financial (March 8, 2007)
190. Option One/H&R Block (December 4, 2007)
213. Countrywide Financial (Jan. 11, 2008)

Update: I stand corrected. You will see coverage of the Implode-O-Meter in tomorrow's papers, if you read The New York Times. The Times tonight files a spot profile of the website, the ultimate hat tip from old media to new. Highlights: "With its tongue-in-cheek tone and running lists of the 'imploded' and the merely 'ailing,' the Implode-O-Meter has become a sort of Gawker of the subprime world. At a recent Mortgage Bankers Association conference, a speaker addressed what has become a hot topic among lenders: how to keep your company’s name off the site."

More: "The Implode-O-Meter is the brainchild of Aaron Krowne, a former researcher at Emory University in Atlanta. A computer scientist and mathematician, Mr. Krowne, 28, started the site in 2007, believing that the troubles in the housing market, and by extension the mortgage industry, would worsen. He was right — and the Implode-O-Meter took off."

Well-deserved recognition. Good on you, Aaron.
Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.

Comments

[TakeFive]

Sorry to be picky, but...

IMB is going to reduce is operating expense by 60%. Actual % of workers being RIF'd is 52.8%.

From today's stakeholder letter:

"Unfortunately, the above actions will necessitate the reduction in our present workforce from approximately 7,200 to roughly 3,400 or so over the next couple of months, which should reduce our operating expenses by roughly 60%."

[peteviles]

TakeFive writes, "Sorry to be picky, but...IMB is going to reduce is operating expense by 60%. Actual % of workers being RIF'd is 52.8%."

Thanks, Take. My bad, I fixed it.

[Cal]

In case you haven't seen it Peter:

http://www.stlouisfed.org/publications/re/2008/c/
pages/mortgage.html

[CD]

Watch Fannie and Freddy , up to no good and protesting too much....I feel like singing "the end" from Apocalypse now, but my heart is not into it....I knew I would pay cash for my next house, 10 cents on the dollar.Can we put Mike Perry and Mr Orange in the same cell and Watch.....

[Laker]

At make sense. Most of Indymac loans resold and portfolio are Stated income and many are Option ARMS. This combination is so lethal that no bank can survive it. The majority of their loans are worth 10-30 cents on the dollar - everytime, one of their REOs is sold, their stock goes south. Their other problem is the lack of cash flow as a result of mass loans not performing...borrowers that stopped paying and live rent free in their homes....

As of today, They are still offering the best savings/CD rates so I'm staying put under FDIC limits. But if they decide to reduce rates, I'm outa there....

[Roger Moore]

The scariest part is that there's already a #266 (Lehman Brothers SBF) on the same day IndyMac officially imploded.

[Steve]

This is just one more benefit of being a borrower rather than a saver, who cares if they all hit the wall

[FormerIMB-LO]

I too started singing "The End" when I saw the stock drop to $0.30 this morning. It's sad, but if you're an Indymac borrower in trouble on your loan, it might be worth it to start offering short payoffs to get your debt reduced.