Home equity lines of credit frozen by Indymac?

Question

My friend got a loan of $200K from Indymac. She put the money into a CD. Now that Indymac has frozen all equity lines

is she affected? Can she keep the 200K?

Answer 1

The FDIC only insures up to 100,000 worth of deposits.  So if IndyMac is completely broke, she only gets 100K.  She'll have to file a claim with the FDIC to get the rest and then may never see a penny.

Very dumb to keep more than 100K in any one account.  Also not very intelligent to take out equity from your home for a CD... at least she could've tried something that gets a real return.

Answer 2

She probably will have difficulty getting any new loans, however, for the funds she's already received, she should be ok.  The new owner is the US Government.  Her obligations to pay have not changed.  

This will affect new borrower's or borrower's who had received loans, but not received disbursement or funds from the company.

Answer 3

not affected at all since if they go under a nother service provider will get her loan and she will have to repay them