Financial Freedom Launches Fixed Rate HECM Reverse Mortgage

PRLog (Press Release) - Sep 20, 2007 -
Financial Freedom Launches Fixed Rate HECM Reverse Mortgage

Financial Freedom’s First Closed End Fixed Rate HECM Expected
to Create Strong Secondary Market

Irvine, CA – [September 20, 2007] -- Financial Freedom, a subsidiary of IndyMac Bank F.S.B. (Indymac Bank®) and the nation’s largest originator of reverse mortgages, announced today the introduction of Financial Freedom’s HECM Fixed Rate Product, its first government insured fixed rate closed end reverse mortgage. Because the closed end structure offers the investor more predictability as to cash flows, which is critical for match funding a fixed rate instrument, Financial Freedom’s HECM Fixed product is expected to appeal to the secondary market.

“We’ve worked extensively with industry leaders to clarify the rules governing fixed-rate HECMs in order to achieve a product that meets seniors’ needs and which we believe will lead to the development of a strong secondary market for the product,” said Michelle Minier, CEO of Financial Freedom. “We expect that other lenders will embrace and replicate this closed-end, fixed rate HECM product, making it the industry standard fixed rate model.”

For the industry, having a reverse mortgage that appeals to the secondary market is critical to the long term success of the product. The ability to achieve strong, reliable execution in the secondary market ultimately lowers costs for the consumer. It also creates more product access as more lenders, attracted by the viable business opportunity begin to offer the products on their platforms.

Financial Freedom’s HECM Fixed offers the certainty of a fixed interest rate for the life of the loan and expands on Financial Freedom’s leading product menu that includes variable rate HECM products and Financial Freedom’s proprietary Cash Account Advantage, the industry’s primary jumbo reverse mortgage, which was introduced in 2000. The company plans to launch a fixed rate proprietary jumbo in Q4.

“Our goal has always been to provide consumers with the most options to meet their needs,” added Ms. Minier. “We expect variable rate HECMs to remain the dominant option, however, for consumers who prefer the comfort of interest rate certainty, they have a new option: HECM Fixed from the oldest and largest reverse mortgage lender in the country.”

About Financial Freedom

Financial Freedom Senior Funding Corporation, a subsidiary of IndyMac Bank, F.S.B., headquartered in Irvine, California, is the largest originator of reverse mortgages in the United States.  Financial Freedom originated over $5 billion in loan fundings on $15.2 billion in home value in reverse mortgages in 2006 and is now the largest servicer of reverse mortgages with a servicing portfolio of over 130,000 loans.

Financial Freedom developed the Reverse Mortgage Analyzer, the industry’s first reverse mortgage software, that helps lenders compare the benefits between the HECM, Fannie Mae and the Cash Account products. The Reverse Mortgage Analyzer has been a powerful tool since 1997 and is the industry standard with more than 28,000 registered users. In addition, this RMA software application has been used to train counselors.

Financial Freedom is also founding member of the National Reverse Mortgage Lenders Association. NRMLA is a nonprofit trade association, based in Washington, DC, whose mission is to support the continued evolution of reverse mortgages as an important financial option for senior homeowners while educating both its members and consumers about the varied applications of this unique loan.  For more information, visit the Financial Freedom Web site at www.financialfreedom.com.

Members sign a Code of Conduct pledging to abide by guidelines that assure fair, ethical, and respectful practices in offering and making reverse mortgages to seniors.  For more information, visit the NRMLA Web site at www.reversemortgage.org.

®2007 Registered trade/service marks are property of Financial Freedom Senior Funding Corporation, A Subsidiary of IndyMac Bank, F.S.B.

©2007 Financial Freedom Senior Funding Corporation

About Indymac Bank

IndyMac Bank, F.S.B. (Indymac Bank®), the 7th largest savings and loan in the nation, is the principal subsidiary of IndyMac Bancorp, Inc. (NYSE:IMB) (“Indymac®” or the “Company”). Indymac Bank, operating as a hybrid thrift/mortgage banker, provides fair and competitive home financing products. All of the assets and operations of IndyMac are held or conducted within the federally-insured, thrift depository institution, Indymac Bank, whose primary funding consists of bank deposits, Federal Home Loan Bank advances, long term debt and equity.  Indymac Bank’s home mortgage products consist primarily of single family, first lien mortgages, 90% of which are saleable to the GSEs (Fannie Mae, Freddie Mac, or Ginnie Mae) today.  In addition, Indymac offers jumbo, full-documentation home loans (loans that exceed the current GSE loan size limits) and home equity lines of credit to prime credit quality borrowers.  The prime home equity loans are subject to a maximum 90% CLTV.   Indymac does not offer any subprime loans which are not saleable to the GSEs.  Indymac Bank also provides FDIC-insured retail banking products to facilitate consumers' personal financial goals.

For more information about Indymac and its affiliates, or to subscribe to the Company's Email Alert feature for notification of Company news and events, please visit http://about.indymacbank.com/investors. To visit Indymac's corporate blog, please visit http://www.theimbreport.com


Contact:
Michael Gelormino
River Communications
914.686.5599
mgelormino@riverinc.com