After laying off 400 workers last month due to a 57% decline in second-quarter profit, IndyMac Bank announced yesterday that it is hiring 600 recently terminated American Home Mortgage retail lending professionals. The ninth-largest U.S. mortgage lender also stated that it planned to hire an additional 150-250 former AHM employees. Approximately 75% of the new hires are loan officers focusing on single-family mortgage products eligible to be sold to government-sponsored enterprises. The balance will specialize in marketing, operations and recruiting. The new hires will be a part of IndyMac Bank's Retail Lending Group [RLG], and are expected to generate quarterly production of roughly $1 billion for the company once they are fully integrated. "The addition of 750 to 850 former AHM retail lending professionals provides a strong complement to the acquisition of the retail lending division of New York Mortgage Company on the East Coast which we completed in the second quarter of 2007," commented Frank Sillman, CEO of the company's mortgage bank. IndyMac's total RLG workforce will increase to 1,500 employees, up from 13 one year ago, as it is also closing on the purchase of certain assets of Barrington Capital of Newport Beach, California in the end of August. IndyMac closed down 3.2% to $22.89 on Tuesday. The company's shares are down 49% this year.
Sources: Press release, Reuters
Commentary: Calming of the Storm at Indymac • Indymac’s Response to TheStreet.com’s Two Ways to Play a Mortgage Lender
Stocks/ETFs to watch: IMB. Competitors: BAC, CFC. ETFs: PSP
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