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Published on Thursday, August 21, 2008
By LA Daily News Staff Writer
Thousands of troubled home borrowers with loans from IndyMac Federal Bank will be able to switch to fixed-rate mortgages under a new plan from federal regulators, who seized the bank last month after it became the largest regulated thrift to fail.
Most IndyMac borrowers who are seriously delinquent or in default on their mortgages and can document their situation will be able to switch into loans capped at an interest rate around 6.5percent, the Federal Deposit Insurance Corp. said Wednesday.
The average U.S. rate on 30-year, fixed-rate mortgages was 6.52percent last week, unchanged from the previous two weeks.
The FDIC has been operating the Pasadena-based bank, which was called IndyMac Bank, under a conservatorship since July 11.
More than 60,000 of the bank's home borrowers are 60 or more days behind on their payments, according to the FDIC
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