NEW YORK, July 6 (newratings.com) – IndyMac Bancorp Inc (NDE.NYS), the parent company of IndyMac Bank, Wednesday announced that it had decided to rule out the initial public offering (IPO) of the Financial Freedom Senior Funding unit and instead purchase a 6.25% stake in the unit for $40 million.

Pasadena, California-based IndyMac Bancorp said it will purchase the stake in Financial Freedom Senior Funding from Jim Mahoney, the unit’s Chairman and Chief Executive. On May 1, the company had revealed its intentions to sell-off a 20% stake in the unit via an IPO. The purchase of the stake would raise IndyMac Bancorp’s interest in Financial Freedom Senior Funding from 93.75% to 100%. IndyMac Bancorp’s CEO, Michael W Perry, said, “This will allow us to fully leverage IndyMac’s systems, infrastructure and mortgage banking expertise in a way that will enable Financial Freedom to remain a highly profitable and dominant player in the fast-growing but ever more competitive reverse mortgage market.”

Source: AP 

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