A Downey Financial Corp. unit that funds loans from outside brokers and accounts for 80% of the saving and loan operator’s loans is being closed, accoridng to a Bloomberg report.
Newport Beach-based Downey said Thursday it plans to close the unit, which funds loans brought to it from independent mortgage brokers.
It also plans to cut down its own retail branches.
The moves come a week before Downey must present regulators with a long- term business plan, according to the Bloomberg report.
Downey said Sept. 5 that it had 45 days to offer a long-term plan to the Office of Thrift Supervision, or until Monday.
Last month, Downey named a new chief executive, Charles Rinehart, former chief executive of H.F. Ahmanson & Co.’s Home Savings, which was sold to Seattle-based Washington Mutual Inc. in 1998.
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