As you may know, St. Mary’s Bank offers reverse mortgages through Financial Freedom, a subsidiary of IndyMacBank. We want to assure all members that despite the recent closing of IndyMacBank, Financial Freedom is not affected and your reverse mortgage is unchanged.

On July 11th IndyMacBank, F.S.B. was closed by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation (FDIC) was named the conservator and has taken control of the institution.

According to the Office of Housing and Urban Development (HUD), the FDIC is maintaining all banking services in the communities formerly served by IndyMacBank, F.S.B. and its subsidiaries including Financial Freedom. Financial Freedom’s operations are not affected and it is “business as usual”.

Further allaying concerns, the National Reverse Mortgage Lenders Association reports: “Financial Freedom will continue to conduct business as usual. Loans will continue to be funded; disbursements will continue to be made to customers with available lines of credit and applications will continue to be accepted.”

Please be assured if you are a senior holding an FHA-insured HECM loan, that you may withdraw funds from your reverse mortgage as needed. And, if you have a HECM loan in process, but have not yet closed, it will not be delayed or affected in any way.

We would be pleased to assist you if you have any additional questions or concerns. Our Mortgage Center may be reached during business hours at 1-888-705-9596.