After more than a week of speculation, the Federal Deposit Insurance Corp. (FDIC) announced a nearly $14 billion deal Friday to sell failed IndyMac Federal Bank to a private-equity consortium led by the head of Dune Capital Management.
Under the deal, expected to close in late January or early February, the Pasadena, Calif. thrift will be transferred to a newly formed holding company called IMB HoldCo, which will be controlled by a limited partnership owned by the investor team.
The Office of Thrift Supervision, IndyMac's federal regulator, said in a press release Friday it had given preliminary approval for the deal.
The sale includes the thrift's 33 branches with $6.5 billion in deposits; a $16 billion loan portfolio and $6.9 billion securities portfolio; rights to a mortgage servicing portfolio worth over $157 billion; and IndyMac's reverse mortgage servicing platform.
The deal also contains a loss-sharing arrangement on a qualifying pool of IndyMac loans, with the new thrift assuming the first 20% of losses, and the FDIC sharing in the remainder.
The agency said the new owners of IndyMac would continue to offer a streamlined loan modification program begun by the FDIC in late August. It said the program had provided an estimated savings of $423 million.
"The FDIC and IndyMac staff accomplished a tremendous amount of work in a short period of time to help thousands of struggling homeowners stay in their homes and maximize value for both the Deposit Insurance Fund and mortgage investors," said John Bovenzi, CEO of IndyMac Federal and the FDIC's chief operating officer, in a press release.
Steven Mnuchnin, currently Dune's chief executive and chairman, will oversee the new thrift operation. The investment team also includes J.C. Flowers & Co., Paulson & Co., MSD Capital, Stone Point Capital, SSP Offshore, and an affiliate of Silar Advisors.
IndyMac Bank failed in July amid a battered portfolio of Alt-A loans. The FDIC estimated the failure of IndyMac will cost it between $8.5 billion and $9.4 billion.