OneWest Bank is a national bank with 70 retail branches in southern
California and approximately $12 billion in deposits as of June 2013.
In March 2009, OneWest purchased many assets from the Independent
National Mortgage Corporation, more commonly known as IndyMac, after
IndyMac filed for Chapter 7 bankruptcy.
In August 2015, OneWest was acquired by CIT Group.
2 Controversial foreclosures on
3 See also
5 External links
Former OneWest headquarters in Pasadena (2009-2016)
In March 2009, the
Federal Deposit Insurance Corporation
Federal Deposit Insurance Corporation (FDIC) held
an auction for
IndyMac Bank, which it had seized in 2008, and sold it
to IMB HoldCo LLC. The FDIC said at the time that IMB Management
Holdings LP, a limited partnership composed primarily of hedge funds,
controlled IMB Holdco LLC. The FDIC also said that IMB HoldCo was the
only bidder for all of the
IndyMac Bank assets. IMB HoldCo did not bid
on the uninsured deposits at
IndyMac Bank. There were a number of
conditions of the FDIC sale to IMB HoldCo LLC, including that IMB
HoldCo would capitalize OneWest with approximately $1.3 billion in
As another condition of the sale IMB HoldCo also agreed to continue
the FDIC’s existing loan modification program. The FDIC also agreed
to share losses on a portfolio of qualifying loans, with IMB HoldCo
assuming the first 20% of losses, with the FDIC sharing losses 80/20
for the next 10% of losses and 95/5 thereafter. Finally under a
participation structure on an approximately $2 billion portfolio of
construction and other loans, the FDIC would receive a majority of all
cash flows generated.
OneWest Bank began operations as a newly formed Pasadena,
California-based federal savings bank on March 19, 2009, with its
acquisition of certain assets and certain limited liabilities of
IndyMac Federal Bank, FSB from the FDIC. The newly formed bank opened
its doors with 33 branches and approximately $16 billion of assets.
Since its formation,
OneWest Bank has grown through acquisitions from
the FDIC of certain assets, loans, and deposits of other
California-based financial institutions. On December 18, 2009, OneWest
completed the acquisition of the banking operations of First Federal
Bank of California, including $6 billion in assets and $5 billion in
deposits. On February 19, 2010, OneWest acquired all of the deposits
and certain assets of La Jolla Bank, FSB, including $4 billion in
assets and $3 billion in deposits.
In December 2009,
OneWest Bank announced the creation of the OneWest
Foundation, a new nonprofit public-benefit corporation funded with a
$10,000,000 contribution from OneWest Bank, FSB. The Foundation is
being established to actively invest in the communities in which the
Bank operates its branch network. In February 2010, OneWest Bank
entered into a purchase and assumption agreement with the FDIC for
acquisition of the deposits and certain assets of La Jolla Bank, FSB.
Under the terms of the transaction, OneWest acquired $3.6 billion in
assets. The FDIC and OneWest agreed to a loss‐sharing agreement
covering a majority of the acquired loans from La Jolla Bank.
On October 4, 2010 OneWest Bank, announced that it has implemented the
Principal Reduction Alternative (PRA) loan modification program as
outlined under the Home Affordable Modification Program (HAMP). With
this announcement, OneWest becomes one of the first servicers to
launch the program. In November 2010, OneWest Bank, purchased of a
$1.4 billion multifamily and commercial real estate loan portfolio
from Citibank, N.A. The portfolio, which includes approximately 600
loans, is a strategic addition to OneWest Bank’s growing Commercial
Real Estate lending business.
As of November 2010,
OneWest Bank has been recognized as the 40th
largest among US banks and thrifts by SNL Financial.
On July 22, 2014 it was announced that
CIT Group would be acquiring
OneWest Bank for $3.4 billion. After the acquisition closed, it was
reported that the bank would be merged with CIT's commercial banking
subsidiary and be called CIT Bank.
On August 3, 2015, it was announced that the acquisition of OneWest
CIT Group was completed.
Controversial foreclosures on
In enforcing its rights under the loans purchased from IndyMac,
OneWest Bank has taken a much more aggressive approach to foreclosing
On November 25, 2009, Judge Spinner in Long Island, New York penalized
OneWest for their “harsh, repugnant, shocking and repulsive”
actions in trying to work out a distressed mortgage, by canceling the
debt in favor of the borrower. A year after the New York Judge
Spinner wiped away the debt, an appellate panel ruled that the judge
had no right to do it. While Judge Spinner ruled that the bank's
practices warranted him erasing the homeowners' debt, the appellate
judges found that he had no authority to render such a judgment—and
did not give the bank fair notice that such consequences were even on
the table. After the ruling, in a previously unreported twist,
senior OneWest executives reviewing the bank’s past-due mortgages
came across a delinquent loan made to the judge, a person familiar
with the matter said. The bank asked the judge to recuse himself. He
did. Judge Spinner said Wednesday that while he fell behind on his
mortgage, this had no bearing on his decision in the Horoskis’ case.
After Judge Spinner recused himself, a higher court overturned his
decision canceling the Horoskis’ loan. The Horoskis’ home was
foreclosed on in 2012 and later sold by the bank. OneWest, now owned
CIT Group Inc., is still trying to get more than $400,000 from Mrs.
Yano-Horoski, she said.
On December 8, 2009 OneWest worked with the Hennepin County, Minnesota
Sheriff’s department to change the locks on a distressed home
despite stating in a Nov. 25 e-mail that they were rescinding both the
foreclosure and the sheriffs sale.
OneWest Bank said, "You expressed
concern that … you and your mother will be evicted from the
property. Rest assured, that will not take place …". Changing the
locks was done without any court action which bypasses acknowledged
and mandated Due Process on home foreclosures in Minnesota.
Additionally several judges have issued Temporary Restraining Orders
and Preliminary Injunctions against OneWest preventing OneWest from
foreclosing on properties where the borrower claims OneWest failed to
follow proper procedure in foreclosing on the property or otherwise
violated the borrower's rights.
United States bank failures
Subprime mortgage crisis
^ a b
^ Reckard, E. Scott (2014-07-22). "Lender CIT to buy OneWest Bank,
formerly IndyMac, for $3.4 billion". LA Times.
^ Crowley, Kieran; Wilner, Rich; Mangan, Dan (2009-11-25). "Judge
blasts bad bank, erases 525G debt". New York Post.
^ Crowley, Kieran; Olshan, Jeremy (November 23, 2010). "Couple's
foreclose break KO'd". New York Post.
^ a b
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