As you may know, mortgage lender Indymac has been seized by banking regulators. This is the latest and most visible of the woes facing the mortgage market.

IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators, in the third-largest bank failure in U.S. history.IndyMac is the biggest mortgage lender to go under since a fall in housing prices and surge in defaults began rippling through the economy last year — and it likely won't be the last. Banking regulators are bracing for a slew of failures over the next year as analysts say housing prices have yet to bottom out.

So what does this mean for Maui real estate? Indymac was actually the lender on some transactions last week here on the island and after a short delay they did fund. The good news is that even if they hadn't, other lenders were prepared to do so in their place. But this is more evidence that lending standards are likely to continue to tighten in the future. For details, contact us!