IndyMac on mortgage standards

Interesting headline from Bloomberg a few minutes ago: "IndyMac to Make 'Major changes' to Mortgage Lending After Slump" The story says the company's CEO sent an email to employees describing the mortgage bond market as "very panicked and illiquid" and added that "Unlike past private secondary market disruptions, which have lasted a few weeks or so, our industry and IndyMac have to be prudent and assume that this present disruption, which appears broader and more serious, might take longer to correct itself."

This is just the latest in a series of steps by mortgage lenders to tighten lending standards. I discussed a couple other moves in this recent post.