home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Credit News | Bankruptcy Statistics | Credit Score Statistics
Credit scores, bureaus & technology. Bankruptcty activity. Credit-related lawsuits, announcements and coverage of F a i r Isaac, E q u i f a x, E x p e r i a n, F I C O, V a n t a g e Score & T r a n s Union.

Unsafe Credit Practices

Cease and desist issued against Prospect Bancshares

July 6, 2006


photo of Coco Salazar

A cease and desist order was issued by the Federal Reserve Board against a Missouri bank because of bad underwriting.

The Fed said it issued the order against Progress Bancshares Inc. and subsidiary Progress Bank of Missouri after an examination found that the company engaged in unsafe and unsound activity, had deficient credit-risk management practices and violated state and federal banking laws.

Without admitting or denying the allegations, Progress consented to recruit within the next two months a qualified chief financial officer and a senior lending officer to oversee the bank's credit function.

Among other things, Progress and its subsidiary also agreed to write a joint written plan to strengthen board oversight of management and operation, including sufficient loan underwriting standards and limits, an effective loan review program, internal control systems and record-keeping procedures.

The Fed ordered the lender to submit written loan policies and procedures such as those prohibiting disbursement of loan proceeds to someone other than the borrower without evidence of proper authorization and for a use other than for the stated loan purpose. Plus, Progress must provide written underwriting standards that require the documentation of a clear source of repayment and the borrower's ability to service the debt.

Progress was also required to correct all documentation and credit information deficiencies, including obtaining accurate and current financial statements and appraisals, according to the order.

Progress must reportedly appoint a joint compliance committee to monitor and coordinate its compliance with the order and submit copies of the meeting minutes to the Fed and the Missouri's division of finance monthly.

Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

e-mail: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders