Mortgage Banking Group IndyMac’s Mortgage Banking Group offers a wide array of home mortgage products using a technology-based approach. Our ability to leverage our technology investment over multiple channels, products and customers creates an efficient, low-cost platform. And that is a key competitive advantage in today’s mortgage industry. Powered by e-MITS® (Electronic Mortgage Information and Transaction System), IndyMac Bank provides customers with fully automated, competitive risk-based pricing, immediate rate lock capability and customized documentation requirements, all within three minutes — 24-hours a day, seven days a week. IndyMac has been a pioneer in the development and implementation of automated risk-based pricing for mortgage loans. Utilizing risk-based pricing, each loan is reviewed for its individual attributes, based on the interest rate (prepayment) risk and credit risk inherent in that loan. Our risk-based pricing system prices loans across all of our mortgage products, in each of our mortgage channels. Mortgage loan products available include: Fixed and Adjustable Rate Mortgage (ARM) Home Loans Conforming Loans “Traditional Prime” Prime Non-Conforming Loans (jumbo and alternative documentation loans) Government — FHA/VA Loans Subprime Loans Consumer Construction-to-Permanent Loans Consumer Lot Loans Home Equity Lines of Credit (HELOC) Three key mortgage loan production channels: BUSINESS-TO-BUSINESS (B2B) www.IndyMacB2B.com As our primary channel, B2B represented 85% of our mortgage loan production during 2001 (with 90% generated via its award-winning Website) and 95% of the Mortgage Banking Group’s profits. This channel serves customers nationwide that have a mortgage production operation as follows: % of customer base today % of 2001 production Mortgage brokers 84% 64% Small mortgage bankers 13% 32% Community financial institutions 3% 4% BUSINESS-TO-CONSUMER (B2C) www.IndyMacMortgage.com IndyMac Bank’s highly-rated business-to-consumer Website offers a wide range of home loan options directly to consumers nationwide. Gomez.com has rated IndyMac Bank’s Website as the best overall mortgage site continuously since Fall 2000. This site enables consumers to apply, obtain loan approvals, lock in an interest rate, receive a printable approval letter, all online, and all within just three minutes. The site also features online loan status information, daily rate comparisons to major competitors, and a quick mortgage rate pricing tool. The B2C channel generates mortgage production on a centralized basis using multiple marketing avenues: Direct at our award-winning Website Indirect Internet leads provided by various multi-lender or Internet-based marketing firms Customer referral or portfolio refinance leads Direct mail and telemarketing Affinity relationships Community lending in our consumer bank branches BUSINESS-TO-REALTOR (B2R) www.LoanWorks.com Our newest production channel is LoanWorks.com. LoanWorks.com serves real estate professionals that do not have an in-house mortgage-processing center, or those that do not wish, for a variety of reasons, to utilize their in-house processing center. We have limited this relatively new channel to California initially as we build the model and metrics for this business. We plan to expand to eight states during 2002, creating additional opportunity for growth. Also during 2002, the B2R channel will make the LoanWorks® process available to other providers who are close to consumers in need of home financing. LoanWorks.com allows real estate agents and builders to utilize our Web-based e-MITS technology as their in-house mortgage processing center and their online origination and pipeline management system. Customers in this channel include the following: Realtors representing consumers in the process of purchasing a new home Realtors in the homebuilder’s office representing consumers purchasing a newly constructed home Small mortgage brokers who do not wish to process loans The mortgage market is huge and IndyMac’s production currently represents less than one percent of the overall market. We have a substantial opportunity to grow our mortgage production channels through the addition of new or expanded customer relationships in our B2B and B2R channels, and marketing opportunities and new or expanded affinity relationships in our B2C channel. IndyMac has increased its B2B customer base over three-fold since the beginning of 1999 when we changed our business model to focus on smaller customers using e-MITS. We have found that our customers begin to do more business with us once they become comfortable with our technology and as their knowledge of our various products and services expands. Investment Portfolio Group IndyMac’s Investment Portfolio Group manages the Bank’s “Held for Investment” portfolio of single-family residential loans, mortgage servicing rights and investment securities. In addition to conducting investing activities with third parties, the group supports our mortgage banking activities by investing in assets created in the mortgage banking process and managing the related interest rate risk. The investment portfolio is comprised of the following key investment categories. MORTGAGE LOANS HELD FOR INVESTMENT Mortgage loans in this portfolio consist of prime quality single-family residential loans with generally strong credit characteristics. IndyMac invests in mortgage loans to generate net interest income, which stabilizes the cyclical nature of mortgage banking earnings. MORTGAGE BANK SECURITIES (MBS) PORTFOLIO IndyMac maintains a MBS portfolio which also generates core earnings to mitigate cyclical mortgage banking revenue. While the Investment Portfolio Group invests in investment and non-investment grade securities, the majority of the MBS portfolio is rated AAA by one or more of the nationally recognized rating agencies. The interest rate risk of the fixed rate portfolio of securities is generally mitigated by investing in shorter duration securities and “match funding” the majority of the portfolio with FHLB advances or utilizing interest rate swaps. SERVICING-RELATED ASSETS Investing in servicing-related assets provides a key support function to the Mortgage Banking Group. To allow full access to diversified loan sale distribution opportunities, the Company must have the ability to retain the servicing function on the mortgage loans it sells. In addition, servicing related assets tend to somewhat offset the cyclical nature of the mortgage production business, by increasing in value when interest rates rise. All of the servicing activities, including collection and loss mitigation are performed by the Investment Portfolio Group. Builder Finance Group The Builder Finance Group provides financing for residential subdivision developers to construct single-family residential loans. Under a refocused strategy, construction lending will be directed toward homebuilders that have committed to using our e-MITS technology to provide mortgage loans to their customers. The Consumer Banking Group Our Consumer Banking Group offers financial products and services through our Website at www.IndyMacBank.com, our telebanking operation and our Southern California branch structure. While IndyMac offers a full array of products, our core strategy has been focused primarily on certificates of deposit and money market savings accounts as opposed to checking accounts. Customers have access to their accounts 24-hours a day, seven days a week through our Website and telebanking services. At IndyMacBank.com customers can access their various accounts, view balances, transfer funds between accounts, view transactions, download account information, and pay their bills. Banking products available include: Certificates of Deposit Checking Accounts Savings and Money Market Accounts Retirement Accounts Online Bill Payment