The banking industry brought a new casualty into focus on Monday as Indymac one of the nations larges thrifts announced it would have to stop accepting and offering new mortgage loans. The company has been trying to raise additional capital for the past few months and has not been successful in this endeavor. The fears over the falling U.S. housing market and the lack of a secondary market to sell mortgage securities has left the company with little options. The OTS reviewed the companies balance sheet and deemed the company to be under capitalized as the value of their mortgage securities has declined.

Indymac will refocus its business plan on its reverse mortgage division, Financial Freedom as well as its loan servicing division. The company will reduce it's workforce by over 3000 jobs and could reenter the mortgage industry in the future if it is able to obtain additional capital or when the housing market shows signs of stability. The companies stock has dropped from $30 to under fifty cents on late Monday and the companies market cap is now less than eighty million dollars so they could become an acquisition target for a well capitalized private firm looking to buy discounted companies.

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