IndyMac under investigation for fraud

The federal investigation into the IndyMac Bank has moved to its homebuilder division, according to a bank exec. The division is being investigated on allegations of appraisal inspectors, possibly inflated project values and whether IndyMac loan officers gave independent appraisers false information. The homebuilders division had a whopping 52 percent of its $1.3 billion in loans classified as non-performing. In slow markets, non-performing loans usually account for about 20 or 30 percent of a bank’s portfolio.