Press Release

Source: Indymac Bancorp, Inc.

Indymac Announces Return to the Prime Jumbo Home Loan Market
Wednesday August 22, 12:31 pm ET

PASADENA, Calif.--(BUSINESS WIRE)--IndyMac Bank, F.S.B. ("Indymac Bank®" or "Indymac®"), the principal subsidiary of IndyMac Bancorp, Inc. (NYSE:IMB <http://finance.yahoo.com/q?s=imb&d=t> - News <http://finance.yahoo.com/q/h?s=imb> ), today announced it is once again originating prime, single-family residential, full-documentation jumbo loans after temporarily reducing the origination of this product due to current illiquidity in the secondary market.

"Given our strong financial position, we are fully committed to the market for prime jumbo home loans," commented Michael W. Perry, Indymac's Chairman and CEO. "Until the secondary market recovers, we plan to retain this product in our investment portfolio at what we believe will be attractive returns."

These prime jumbo products will be available through all Indymac's distribution channels for borrowers providing full documentation only. The product offerings include 5/1 adjustable rate mortgages (ARMs), 7/1 ARMs, and 15- and 30-year fixed rate products. The following provides the minimum standards a borrower must meet to qualify for these products:

* A borrower with a FICO score of 680 and above and a down payment, or equity, of 25 percent is eligible for a loan of up to $2 million;
* A borrower with a FICO score of 680 and above and a down payment, or equity, of 20 percent is eligible for a loan of up to $1 million;
* A borrower with a FICO score of 700 and above and a down payment, or equity, of 15 percent and mortgage insurance, is eligible for a loan of up to $750,000.

Jumbo loans are single-family residential mortgage loans that have a loan balance exceeding that which is saleable to the government sponsored agencies, currently $417,000.

About Indymac Bank

IndyMac Bank, F.S.B. (Indymac Bank®), the 7th largest savings and loan in the nation, is the principal subsidiary of IndyMac Bancorp, Inc. (NYSE:IMB <http://finance.yahoo.com/q?s=imb&d=t> - News <http://finance.yahoo.com/q/h?s=imb> ; "Indymac®" or the "Company"). Indymac Bank, operating as a hybrid thrift/mortgage banker, provides fair and competitive home financing products. All of the assets and operations of IndyMac are held or conducted within the federally-insured, thrift depository institution, Indymac Bank, whose primary funding consists of bank deposits, Federal Home Loan Bank advances, long term debt and equity. Indymac Bank's home mortgage products consist primarily of single family, first lien mortgages, 90% of which are saleable to the GSEs (Fannie Mae, Freddie Mac, or Ginnie Mae) today. In addition, Indymac offers jumbo, full-documentation home loans (loans that exceed the current GSE loan size limits) and home equity lines of credit to prime credit quality borrowers. The prime home equity loans are subject to a maximum 90% CLTV. Indymac does not offer any subprime loans which are not saleable to the GSEs. Indymac Bank also provides FDIC-insured retail banking products to facilitate consumers' personal financial goals.

For more information about Indymac and its affiliates, or to subscribe to the Company's Email Alert feature for notification of Company news and events, please visit http://about.indymacbank.com/investors. To visit Indymac's corporate blog, please visit http://www.theimbreport.com