C.A.R Market Matters, October 09, 2008

Thursday, October 09, 2008

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS

New York Times

Central Banks Coordinate Global Cut in Interest Rates

Hoping to thaw the current credit freeze, the Federal Reserve, the European Central Bank, the Bank of England, and the central banks of Canada and Sweden reduced their primary lending rates by a half percentage point on Wednesday. The Chinese central bank also reduced its key interest rate and lowered bank reserve requirements, while the Bank of Japan's rates remained unchanged.

MAKING SENSE OF THE STORY FOR CONSUMERS

The purpose of the rate cut is to increase consumer confidence, which in turn should help stimulate the economy. When consumers and businesses have more confidence in the economy, they usually spend more money, which bolsters the economy by enabling retailers to increase sales and prevent future layoffs.

The Federal Reserve controls the interest rate that banks charge each other for short-term loans. Usually this leads to banks lowering the rates they charge consumers and businesses. The short-term loan-rate reduction, from 2 percent to 1.5 percent, should have an almost immediate effect on credit card rates, according to financial analysts. Interest rates on automobile and business loans also should decline. Generally, the short-term loan-rate reduction also leads to reduction in mortgage rates; however, it is too soon to predict if that will happen in this case given the way the market has reacted to recent economic news.

Some credit card companies already have reduced their credit card rates. Although there may be room for further reductions for some consumers, many experts believe that only consumers with the best credit scores and payment history will benefit from the rate reduction.  Most credit card companies deem consumers with high credit scores as providing the least amount of risk.

Consumers with fixed-rate mortgages will not benefit from the rate cut; however, those with adjustable-rate mortgages (ARMs) may. When banks receive an interest rate cut, they may pass along the savings to consumers. Homeowners with ARMs could receive a payment reduction.

Click here for the full story

MSN

Sell your home fast in any market

Due to the large number of available homes on the market, and the fact that the traditional home-buying season is coming to a close, sellers need to be aware of key factors that can determine whether their home sells quickly or lingers on the market.

MAKING SENSE OF THE STORY FOR CONSUMERS

Accurately pricing a home continues to be the number one factor to conclude a successful sale. Most REATLORS guide sellers in determining an accurate listing price for their home by tracking comparable properties in their neighborhood that have sold within the previous three to four months. Since the market can greatly fluctuate from one neighborhood to another, some REALTORS believe that setting a price based on comps older than three to four months will not accurately reflect the current market and could result in pricing a home at odds with current market conditions.

Even in today's market, sellers do have some control over many contingencies. Some buyers may request that their contracts include contingencies based on their ability to obtain financing. To avoid risks associated with this contingency, some REALTORS advise their clients to request buyers to provide a pre-approval letter from a well-established lender; a financial information sheet outlining the buyer's employment history, income, assets and liabilities; and a recent bank statement showing that the buyer has enough funding reserves for the required down payment. This ensures that the buyer is likely to be approved for a mortgage loan, and reduces the risk to the seller.

Some buyers may use a home's inspection report as a bargaining chip to negotiate a lower price. When this occurs, some sellers offer buyers a lump sum of money so the buyer can make the repairs, rather than the seller repairing each item listed on the report. Sellers may be able to avoid paying a lump sum to the buyer by having the home pre-inspected prior to listing. This enables the seller to obtain accurate estimates for the cost of repairs ahead of time and provides the seller with the option of making the repairs before listing the home.

Click here for full story

CNBC

Brokerage Asks Sellers to Cut 10% off Home Prices

In an attempt to lure potential buyers off the sidelines, a nationwide real estate brokerage is asking its approximately 25,000 sellers who have homes listed with its brokers to reduce their listing prices by as much as 10% for its first national, 10-day sales event. 

MAKING SENSE OF THE STORY FOR CONSUMERS

According to a recent Coldwell Banker survey, more than half of its real estate agents said listing prices in their market are still too high to attract qualified buyers. The brokerage is hoping that the 10-day price reduction will entice home buyers to venture back into the market and help reduce the current supply of unsold homes. In California, C.A.R's Unsold Inventory Index for existing single-family detached homes in August 2008 was 6.7 months. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

Buyers who are uncertain if now is the right time for them to purchase a home should consider the price of the home, along with the recent reduction in mortgage rates, which could reflect a sizable savings. According to the primary Mortgage Market Survey, 30-year fixed-rate mortgages averaged 5.94% with an average .6 points for the week ending Oct.9. This is a decline from the previous week when fixed-rate mortgages averaged 6.10%. Last year at this time, the 30-yr fixed-rate mortgage averaged 6.4%.

Click here for full story

In Other News...

Los Angeles Times: Countrywide mortgage pact may be worth $3.5 billion to California loan holders? 

Los Angeles Times: How much foreclosure relief will homeowners get from bailout plan?

Sacramento Bee: Rescue bill won't curb region's foreclosures, experts say 

Mercury News: Forecast calls for continued drop in home prices

Mercury News: Freddie, Fannie cut back mortgage fees

Wall Street Journal: California Officials Try to Avoid Second Housing Hit

CNN Money: Consumers rein in borrowing 

C.A.R e-Blasts are published by the California Association of Realtors

Market Matters Advisory, Thursday Sept 11th

Welcome to the Market Matters Advisory, your weekly guide to responding to the market. 

Fannie Mae and Freddie Mac Placed into Government Conservatorship

Fannie Mae and Freddie Mac, government sponsored enterprises (GSEs), were placed into a conservatorship Sunday by the U.S Dept. of the Treasury. The Federal Housing Finance Agency (FHFA) will serve as the conservator, and the CEOs of each company were relieved of their duties. Replacing them are Herbert Allison, former Merrill Lynch vice chairman, and David Moffett, former U.S Bancorp CFO, who will now lead Fannie Mae and Freddie Mac, respectively.

MAKING SENSE OF THE STORY FOR CONSUMERS

Under the conservatorship, the FHFA has the authority to take up to an 80% stake in the companies, and will review both GSEs' financial condition quarterly. The federal government may inject capital into Fannie Mae and Freddie Mac if needed. Both GSEs will be allowed to increase their mortgage funding over the next year and a half, and their stock will continue to trade, with stockholders retaining all rights in the stock's financial worth. However, the plan does call for a 10% reduction per year to GSEs portfolios, beginning in 2010, until they have been reduced to 250 billon.

Although the conservatorship has resulted in lower interest rates for consumers, and restored investor confidence, C.A.R is concerned that the Treasury and new CEOs will change the mission of role of GSEs. Without GSEs, mortgage capital eventually will be less predictable and more expensive. This may result in adjustable-rate mortgages becoming the standard for home buyers, as well as higher down payment requirements, and the possible disappearance of the 30-yr fixed rate mortgage.

C.A.R supports a structure that maintains GSEs in their current countercyclical roles and is urging lawmakers to support continued government involvement in supporting the institutional secondary market. As a result of these concerns, C.A.R will be asking Congress to enact legislation to ensure GSEs continue to fulfill their congressional mission of supplying an affordable and stable flow of capital for home loans.

C.A.R PRESS RELEASE ABOUT CONSERVATORSHIP

Additional Articles

How the Fannie and Freddie Takeover Affects You

It's a hard time to get new credit

Fannie and Freddie 101

Q%A about mortgage giants Fannie Mae, Freddie Mac

What rescue means for mortgage rates

CNN Money

Your home: When it's wise to downsize

As a result of reaching retirement age and becoming empty nesters, more baby boomers are choosing to downsize from large, multi-room homes to ones with less square footage. While some buyers are choosing to downsize to save money, others--especially those still in the workforce--are opting for a lifestyle change, such as a shorter commute; the convenience of an onsite fitness center, often found in condominium communities; or energy savings.

MAKING SENSE OF THE STORY FOR CONSUMERS

Some buyers are choosing to downsize to condominiums, as they are often located in close-proximity to sops, restaurants, transportation; and everyday needs such as grocery stores, dry cleaners, or the pharmacy. Although this is convenient, buyers who wish to save money by downsizing should weigh all the facts before making the decision to downsize. While most single-family homes incur costs such as property taxes, utilities, and home maintenance, most condominium communities require owners to pay monthly homeowner association (HOA) fees, and sometimes special assessments. The monthly dues and special assessments are generally used for items such as replacing a swimming pool, upgrading the community clubhouse, or adding new amenities. Buyers concerned about these costs should ask how much HOA fees have risen over the past five years, and whether the association has plans for new assessments in the near future. 

Even with the added costs, many buyers will realize an annual savings when downsizing. Some experts estimate that the average annual savings in utility costs and property taxes could be as high as $3,900 if a buyers downsizes from a 2,800 sq-ft residence to one that is 1,800 sq ft. 

Buyers who are at or near retirement should consider acquiring a mortgage loan with a 15 yr maturity or a traditional 30-yr fixed rate loan that does not charge a prepayment penalty. Although payments on a 15-yr mortgage are higher and the interest rate is only about .10% lower than a traditional 30-yr fixed rate loan, borrowers can save approximately $141,000 in interest over the life of the loan.

If a borrower elects for a traditional, 30-yr fixed rate loan, they should consider one without a pre-payment penalty. This allows the borrower to make extra payments each month and pay off the mortgage more quickly, without adding additional pressure should their financial situation change.

Full Story

San Francisco Chronicle

Negotiating Skills Vital to Home Purchase

With the high inventory of homes on the market, and an average time on the market of about 50 days for an existing single-family home in CA, buyers have more room to negotiate. Although sale price is a large factor during the negotiation process, many REALTORS are advising their clients that the motto of "it doesn't hurt to ask" can be used to negotiate other contingencies, such as inspection reports, closing costs, and the like.

MAKING SENSE OF THE STORY FOR CONSUMERS

While there are many homes to choose from, buyers should understand that homes in many affluent neighborhoods are still selling quickly and in some cases also are garnering multiple offers. Experts advise that a buyer should work with their REALTOR when negotiating the sale price, and also to ensure that the offer is realistic when serious about purchasing a home in one of those communities. 

Buyers who are looking for the best-deal possible should consider homes that have been on the market for longer than is typical for their area and whose listing price has remained unchanged. Buyers also should consider making second offers on homes that the seller may have intitially rejected. Due to seasonality and the length of time the home has been on the market, some sellers may accept a lower offer than they originally planned.

In addition to the sale price, some REALTORS are advising sellers to negotiate on inspection reports. In today's market, some sellers may be more willing to pay to repair, or negotiate credit for repairs that arise during home inspection. 

Full Story

IN OTHER NEWS...

LA Times

Pending home resales fall 3.2%

Foreclosures accelerate to fastest pace in almost three decades

The Mercury News

House hunting with a mobile phone

Market Snapshot

This week C.A.R is introducing Market Snapshot, a new feature that will appear monthly in Market Matters. Created by C.A.R's research and economics team, Market Snapshot offers REALTOR information about the current market, and provides consumer-friendly charts and graphs.  CLICK HERE to visit C.A.Rs website, where you can view Market Snapshot. 

brought to you by California Association of Realtors (C.A.R)

C.A.R Market Matters, August 28th

Thursday, August 28th, 2008

Welcome to the Market Matters Advisory, your weekly guide to responding to the market. 

Barron's

The Endgame Nears for Fannie and Freddie

Shares of Fannie Mae and Freddie Mac have declined by approximately 90% from the previous year and both companies are reporting quarter-over-quarter losses, leading some to believe that a government takeover or complete privatization is imminent.

MAKING SENSE OF THE STORY FOR CONSUMERS

According to the Barron's article, which states "should the agencies fail to raise fresh capital, the administration is likely to mount its own recapitalization, with Treasury infusing taxpayer money into the enterprises," consumers would be led to believe that a government bail out is the only option. Although a cash infusion may be needed, it is not likely that the Treasury would purchase an equity stake in either Fannie or Freddie. Additionally, the Treasury Dept. must negotiate an agreement with the GSEs. Fannie and Freddie continue to raise capital own their own and some reports show that the GSEs are looking for private-equity firms or outside investors to provide the financing, which would help raise capital and reassure Wall Street.

The article also states, "In the early 1980s Fannie was effectively insolvent, but the government allowed it to continue operating." Many consumers are not aware of how the GSEs serve the market or what their roles are. Unlike banks, which lend directly to consumers, Fannie Mae and Freddie Mac operate in what is known as the "secondary mortgage market." They purchase or guarantee loans from direct lenders in the "primary mortgage market" and either hold onto them until they mature, or sell the loans in the form of mortgage backed securities. By the GSEs guaranteeing or purchasing the loans from banks, Fannie and Freddie are able to fulfill their congressional mission and supply an affordable and stable source of capital to lenders, allowing them to offer more home loans.

Due to tighter lending standards, it is becoming increasingly more difficult for borrowers to secure home loans. If Fannie Mae and Freddie Mac did not guarantee or purchase primary lenders' loans, the cost of homeownership would dramatically increase as lenders would experience an even greater capital shortage.

Many financial institutions in the mortgage business are experiencing losses, and while the GSEs are no exception, their portfolios continue to outperform the majority of lenders in the market. Additionally, unlike private investors which seem to have abandoned the mortgage market, Fannie Mae and Freddie Mac are fulfilling their congressional mission to provide an affordable and stable flow of capital to home-loan lenders.

FULL STORY

Yahoo News

Consumer Outlook Up, Worst May Be Over for Housing

Primarily as a result of lower gas prices, consumer confidence increased in August, with The Conference Board's consumer conference index rising to 56.9, up from the revised 51.9 reading in July. Following a six month decline, August was the second consecutive month that the index increased. A reading of 100 is considered the highest rating possible. In a separate report, new home sales posted an unexpected increase in July, while the Standard & Poor's/Case-Shiller U.S National Home Price Index showed prices declined at a slower rate in the second quarter, indicating that some areas may have reached the trough in home price declines.

MAKING SENSE OF THE STORY FOR CONSUMERS

The conference Board's consumer conference index measures how consumers perceive the current conditions and future expectations of the US economy. The index is based on a survey of 5,000 U.S households.

The monthly survey details consumer attitudes and buying intentions. Increased consumer confidence generally indicates that consumers are more willing to make purchases. Decreased confidence indicates that consumers are likely to slow their spending.

Although the Conference Board's Present Situation Index declined to 63.2 in August, compared with 65.8 in July, consumers expect the economy to improve over the next six months, as indicated by The Conference Board's Expectations Index. The Expectations Index increased by 10 points, the largest increase since November 2005.

FULL STORY

USA Today

Home Prices in Record Tumble, but some find Hints of Recovery

Although home prices decreased 15.4% during the second quarter compared with the same period a year ago, in month-over-month comparisons, home sales are increasing, according to the Standard & Poor's/Case Shiller U.S National Home Price Index. According to the Office of Federal Housing Enterprise Oversight's home price index, states with the largest annual declines include CA at 16%, FL at 12%, AZ at 9%, and RI at 5%. Existing home sales increased in July and exceeded many economist's expectations, while new home sales also increased 2.4% for the same time period.

MAKING SENSE OF THE STORY FOR CONSUMERS

Although home prices are decreasing, existing home sales are increasing nationwide and in CA. In CA, single-family, existing home sales increased 43.4% in July compared with the same period a year ago. Sales in July remained above the 400,000 level for the third consecutive month, with deeply discounted, distressed sales continuing to drive volume in many regions of the state.

The state's unsold inventory index (UII) for existing, single-family detached homes decreased to 6.7 months in July 2008, compared with 10 months (revised) for the same period a year ago. The UII indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

FULL STORY

In Other News...

San Jose Mercury News

Lenders Remain Wary of Real Estate Investors 

Reuters

More Owners Say Their Homes Depreciated: Survey

Home Buyers Hold Fate of U.S Economy

Forbes

America's Most Distressed Housing Markets

CNN Money

Paulson's Fannie Freddie Fix

San Francisco Chronicle 

Home Sales in State Soar as Prices Plunge

TALKING POINTS

What to tell consumers--

Despite the high inventory of homes on the market, sales of deeply discounted, distressed properties are increasing and the Unsold Inventory Index (UII))--which indicates the number of months needed to deplete the supply of homes on the market at the current sales rate--is declining. With sellers often in competition with banks when selling their home, it is important for sellers to be aware of some best practices to help them sell their home. With guidance from their REALTOR, consumers need to carefully consider the importance of realistically pricing a home, properly staging their house prior to putting it on the market, and playing up the home's strengths.

While it may be common knowledge to REALTORS that the first offer is often the best, some sellers may not feel the same way. Many believe that if the first potential buyer makes an offer close to the asking price, future offers may exceed it. In many instances, this is not the case, and subsequent offers often are for less, especially in a declining market.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS

HOPE

A recent article in the Mercury News lays out the future for the HOPE program, and what struggling mortgage borrowers can expect from this $300 billion dollar initiative.  For the full article, click the link--

Kenneth Harney: There's 'HOPE' around corner for struggling mortgage borrowers

The basic goal behind the HOPE program is to save people at immediate risk of losing their houses who could afford to keep their property and avoid foreclosure if offered a reduction in mortgage balances and interest rates. 

The program as outlined is completely voluntary, and that may be one of its biggest flaws. It's supposed to provide refinancing to as many as 400,000 homeowners drowning in their current loans, but it will ultimately be up to the lenders and investors who own those loans to decide if they'll allow their borrowers to refinance. So even if the borrower desperately wants or needs to take advantage of the HOPE program their lender might stop them, fearing they'll lose less by letting borrowers slide into foreclosure. 

This puts a massive roadblock in place that may severely limit the HOPE program's ability to actually help homeowners. There are other hurdles to consider as well. Here they are, straight from the article. 

Borrowers must--

"Demonstrate a "lack of capacity" to pay their current mortgage but have enough income to make regular monthly payments on a smaller, fixed-rate FHA loan. Their current income-to-mortgage debt ratio must be above 35%.

Certify to the government that they haven't "intentionally defaulted" on their current mortgage or on any other debt in order to refinance into a HOPE loan. They must also certify that they are telling the truth about their financial status, and have never been convicted of a fraud. Anyone who lies will be subject to severe penalties, including up to five years in prison.

Agree to use and occupy the refinanced house as their principle residence, and not own any additional houses."

The plan could go into effect as early as Oct 1st. Hopefully it will help shovel us out of the housing/foreclosure crisis. We'll have to wait and see how cumbersome the limitations on this program prove to be. 

California Association of Realtors, Market Matters

Bottom's up: This real-estate rout may be short-lived

Home sales and prices may be down, foreclosures may be mushrooming and the blowback from the subprime mortgage crisis may be threatening banks and secondary mortgage lenders, but there are some early signs the real estate market is trending in a more positive direction -- although you may not know it if you rely on the mainstream media for your real estate news.

MAKING SENSE OF THE STORY FOR CONSUMERS

· Recent data suggest real estate market pessimism may be overblown. Even economist Karl Case, father of the S&P/Case Shiller Home Price Index, admits many industry pundits and members of the media are ignoring key facts – as demonstrated by their focus on negative year-over-year price figures rather than more recent monthly data. An example: Home prices actually increased slightly in eight of 20 Case Shiller markets between March and April. Instead, the focus of most media reports was on year-over-year figures, which continue to support the notion that the market may not have hit bottom, let alone begun to improve.

· Transaction-related indices may be skewed at present by a far larger than normal share of subprime-derived default and distress sales. In the San Francisco Bay Area, for example, more expensive homes (those priced over $721,548) have dropped in price by only about 10.7 percent from their peak, compared with homes priced under $473,711, which have tumbled by 40.9 percent.

· Even new housing construction numbers suggest an improvement, according to Case. He notes that housing starts, which fell to 975,000 in April from 2.27 million in January 2006, have fallen by similar percentages three times during the last 35 years. Case observes that each previous time this has occurred the market has staged a surprising upturn within a quarter. Only a slide into a recession would temper his optimism about the potential for a similar recurrence of this trend.

To read the full story, please click here

Fed stiffens restrictions on mortgage lenders

The Federal Reserve is clamping down on what it called "deceptive acts and practices" by some mortgage lenders that it says helped lead to the subprime mortgage crisis. The new rules, which apply to all banks and other lenders and specifically target subprime loans and borrowers, will take effect Oct. 1.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The new rules "are intended to protect consumers from unfair or deceptive acts and practices in mortgage lending, while keeping credit available to qualified borrowers and supporting sustainable homeownership," said Federal Reserve Chairman Ben Bernanke.

· The new rules will prohibit loans to borrowers who can't repay the loan from income and assets other than the home's value and will require lenders to verify the borrower's income and assets. Prepayment penalties are banned for the first four years of any adjustable rate subprime loan and for the first two years on other subprime loans. Lenders also must establish escrow accounts for property taxes and insurance for all first-lien loans

· Also banned are seven misleading advertising practices, including use of the word "fixed" to describe a rate or payment that changes at any time during the loan term. Other prohibited practices include loan comparison advertising (unless all payments and rates are disclosed), foreign-language ads where disclosures are presented in English, and encouraging appraisers to misrepresent a home's value. The rules also will require lenders to credit payments on the date of receipt, prohibit pyramiding of loans, and require a good faith estimate of costs and payments on any loan application for a home secured by its value (including home equity loans and refinancings) within three days. Further, borrowers cannot be charged any fees other than to obtain a credit report before receiving that estimate.

To read the full story, please click here:

Bush offers plan to save Fannie, Freddie

Eroding confidence in the nation's two largest mortgage finance companies led President Bush to ask Congress to approve a rescue plan that would provide billions of dollars in investments and loans to the two companies. Separately, the Federal Reserve said it would make funds available to Fannie Mae and Freddie Mac on a short-term basis, if necessary. The dual rescue efforts came over the weekend after stock prices for the two quasi-governmental companies plunged late last week, potentially jeopardizing a planned debt offering by Fannie Mae and sending shock waves through the nation's equity markets.

MAKING SENSE OF THE STORY FOR CONSUMERS

· The White House plan calls on Congress to raise the national debt limit and to allow the Federal Reserve to determine how large a cash reserve the two companies must have on hand. The proposals are expected to be attached to a housing bill that will be voted on by Congress as early as this week.

· Both Fannie Mae and Freddie Mac have existing credit lines of $2.25 billion that were set 40 years ago by Congress when Fannie Mae held about $15 billion in outstanding debt. It now has about $800 billion in debt; Freddie Mac debt totals about $740 billion.

· Despite concerns that the program will protect shareholders and investors while asking taxpayers to foot the bill, Treasury Secretary Henry M. Paulson, Jr. reiterated that the failure of either Fannie Mae or Freddie Mac would have a devastating impact on the world economy because their debt is held by investors around the globe.

To read the full story, please click here:

In Other News…

Bloomberg.com

Foreclosures rose 53% in June, bank seizures tripled

To read the full story, please click here:

CNNMoney.com

Calm down: Beyond the Fannie and Freddie panic

To read the full story, please click here

Riverside Press-Enterprise

Inland condo projects shut down as single-family home foreclosures flood market

To read the full story, please click here

Sacramento Bee

Feds' aid for mortgage giants is said to aid Sacramento market

To read the full story, please click here

San Francisco Chronicle

No sign of slump in S.F. rental market

To read the full story, please click here

Talking Points

Here's what to tell consumers

· The nation's banks are in less danger of failing today than they were during the savings & loan crisis of the late 1980s and early 1990s, when more than 1,000 financial institutions failed and taxpayers funded a bailout totaling more than $125 billion. How does the current crisis compare? To date this year, only six lenders have failed and the Federal Deposit Insurance Corporation (FDIC) has only 90 banks on its "watch" list, compared with 575 banks in 1994. However, former FDIC Chair William Isaac recently called bank failures a "lagging indicator" rather than a "leading indicator" and predicted there will be more bank failures this year as lenders cope with subprime lending losses.

· Banks and loan servicers may be beginning to catch up with troubled loan workouts, but the numbers of borrowers who require assistance continues to rise. During the first six months of this year, Countrywide says it modified the terms of 86,000 loans, and Bank of America, which recently acquired Countrywide, reports that counselors are completing more than two workouts for every completed foreclosure. Hope Now, an alliance of lenders, says it conducted 70,000 loan modifications in May, although an estimated 85,000 families lost their homes that month. Even if loans are modified borrowers still may not be able to make their mortgage payment if they have lost a job, for example. According to a working group of the Conference of State Bank Supervisors, 32,000 loans that were modified in recent months already are delinquent again. That may be because few loan modifications actually result in lower monthly payments due to a cut in the principal loan balance. In California, only 1.3 percent of loan modifications involved such a reduction.

· IndyMac Bancorp's new management, the Federal Deposit Insurance Corporation (FDIC), has halted foreclosures and said it is focusing on modifying existing loans to make them more affordable for IndyMac borrowers. The bank has about $15 billion in mortgage loans in its own portfolio and manages servicing for another $185 billion in mortgages owned by other institutions. FDIC officials said they were examining troubled loans contained in the broader servicing portfolio loan by loan to determine whether they can be modified. However, borrowers serviced by IndyMac who need help may want to move quickly: The FDIC hopes to sell the troubled thrift and its assets within 90 days. IndyMac reopened under federal oversight on Monday after regulators closed its doors on Friday. Last year, it ranked as the tenth-largest mortgage lender and eight-largest mortgage servicer in the county.