One of the nation's biggest mortgage lenders says it will not have a profitable quarter this year. IndyMac Bancorp, based in Los Angeles, reported a $184.2 million loss in the first quarter of the year. One year ago, the company turned a profit of $52.4 million.
Mortgage-based securities and their decline in value made the company unprofitable last quarter. IndyMac also lost money when it had to discontinue all loans by its construction lending division last year as home building dried up. To help turn things around, IndyMac says it will save $7.4 million a quarter by no longer paying dividends on preferred shares of its stock.