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Much of the impact of this decline was already
evident in the fourth quarter of 2003. Industry production decreased
49% from the third to the fourth quarter. IndyMac’s fourth
quarter reflected market share gains of 44% and improved returns
in our investing activities with the result that we earned $0.75
per share, our second highest quarter on record. The MBA’s
full year 2004 projection of $2.0 trillion of mortgage production
represents an
additional decline of 19% off the fourth quarter run rate. In
this environment, we are projecting that EPS will remain relatively
flat to 2003 EPS. Frankly, we are pleased that the market transition
is taking place, since
we believe it will highlight the strong, well-positioned companies
such as IndyMac from the weaker players. |
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A meritocracy rewards achievement. If you
don’t have a meritocracy, the only alternative is a politically
driven system, which rewards employees unevenly and creates
morale issues for the top performers versus the top politicians.
Rewarding people for hard work also helps to manage risk and
keep employees’ interests aligned with the owners’.
Cost is a competitive advantage in the mortgage business, and
compensation programs that are more performance-based help the
Company to manage costs efficiently
and effectively. |
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