IndyMac's
aggressive growth strategy, use of Alt - A and other nontraditional loan products, insufficient underwriting, credit concentrations in residential real estate in the California and Florida markets — states, alongside Nevada and Arizona, where the housing bubble was
most pronounced — and heavy reliance on costly funds borrowed from a Federal Home Loan Bank (FHLB) and from brokered deposits, led to its demise when the mortgage market declined in 2007.