IndyMac Bancorp Inc. of Pasadena, Calif., has acquired most of Financial Freedom Holdings Inc., an Irvine, Calif., reverse mortgage lender, from Lehman Brothers.
The purchase price was about $80 million, an IndyMac spokeswoman said Friday.
IndyMac said the purchase will likely dilute to third-quarter earnings by a few cents a share, because of purchase accounting, and will be accretive thereafter.
Financial Freedom became a majority-owned subsidiary of IndyMac Bank. Its management retained a 6.25% stake.
Also last week, Financial Freedom announced it has begun offering the first reverse mortgage with no up-front costs. The "Simply Zero Cash Account" is for borrowers seeking jumbo loans. Borrowers must draw all funds at closing.
