twitter linkedin
facebook google+
Search:

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.

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

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.



Graveyard Journal: Broker Warns About Big Banks

4 banks, 2 mortgage companies close

Feb. 21, 2010

By MortgageDaily.com staff


An Oklahoma mortgage broker, who also is in the state's legislature, has closed his company and warns that big banks are benefiting from federal initiatives at the expense of small firms like his. As another casualty emerged from recent Federal Housing Administration actions against mortgagees, four bank failures last week are expected to cost more than $1 billion.

The Florida Office of Financial Regulation Friday seized Marco Community Bank and, as is done with all federally insured banks that fail, handed the 32-employee firm over to the Federal Deposit Insurance Corporation. The Marco Island, Fla., institution's $117 million in deposits as of Dec. 31, 2009, were assumed by Mutual of Omaha Bank for a 1.5 percent premium.

Mutual of Omaha also acquired all of the six-year-old bank's $120 million in assets -- including $52 million in one- to four-family loans, $19 million in commercial real estate loans and $17 million in construction-and-land-development loans. With the FDIC sharing in losses on $105 million of the assets, the cost to the Deposit Insurance Fund is estimated at $38 million.

Next, the Office of the Comptroller of the Currency shut down La Coste National Bank after determining that the La Coste, Texas, bank "had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices" and was "critically undercapitalized" with no reasonable prospect of recovery without federal help.

Community National Bank assumed 98-year-old La Coste's $49 million in deposits as of Dec. 31 for an 0.51 percent premium and acquired all of its $54 million in assets, which included $5 million in home loans and $2 million in commercial mortgages. The failure of La Coste, which had 11 employees, is estimated at $4 million.

In Orland Park, Ill., George Washington Savings Bank was closed by the Illinois Department of Financial Professional Regulation-Division of Banking. The bank was founded in 1890 and employed 57 people as of Sept. 30, 2009. It held $83 million in residential loans, $38 in commercial mortgages and $178 million in construction-and-land-development loans.

FirstMerit Bank, National Association, assumed George Washington's $397 million in deposits as of Dec. 31 at an 0.31 percent premium and acquired all of its $413 million in assets. The FDIC agreed to a $324 million loss-sharing arrangement and expects the failure to cost $141 million.

Friday's fourth, fattest and final failure occurred in La Jolla, Calif., where the Office of Thrift Supervision closed La Jolla Bank, FSB, because it "was in an unsafe and unsound condition to transact business and was critically undercapitalized with no reasonable prospect of becoming adequately capitalized."

The bank, founded in 1985, had $2.8 billion in total deposits, which were assumed by OneWest Bank FSB at par. OneWest also acquired all of 124-employee La Jolla's $3.6 billion in total assets including $686 million in home loans, $1.827 billion in commercial mortgages and $843 million in construction-and-development assets.

After sharing in losses on $3.31 billion of the assets, the FDIC pegged the cost to its Deposit Insurance Fund at $882 million. La Jolla was the 20th FDIC-insured failure so far this year.

The FDIC issued a statement on Feb. 12 in response to a video from mortgage service provider ThinkBigWorkSmall.com claiming that OneWest's March 2009 acquisition of IndyMac Federal Bank FSB -- the entity created by the FDIC when the Office of Thrift Supervision closed down IndyMac Bank F.S.B. in July 2008 -- has turned out to be a successful venture by One West at taxpayers's expense.

The FDIC called the company's claims "blatantly false" and clarified that its loss-sharing obligation is limited to 7 percent of assets serviced by the Pasadena, Calif.-based lender and only kicks in after OneWest first takes $2.5 billion in losses. In addition, the lender must adhere to the Home Affordable Modification Program -- which was modeled after FDIC's own strategy for IndyMac loans while it operated the institution.

"OneWest has not been paid one penny by the FDIC in loss-share claims," the FDIC proclaimed. "This video has no credibility."

Premium Capital -- which does business as Topdot Mortgage, lost its Ginnie Approval and was one of five firms to lose FHA mortgagee approval last month -- is calling it quits.

"At this time Topdot is not accepting or processing mortgage applications," a message on its Web site reads. "We hope to resume our business activities in the near future."

Dan Newberry, the president of seven-year-old Homeland Federal Mortgage in Tulsa, Okla., issued a statement indicating that the company closed in December and blaming federal initiatives that favor big banks, Tulsa World reported. The mortgage broker, who is also a Republican state senator, reportedly threw seven-employee Homeland and several other businesses into bankruptcy.

Employees of Wilmington, N.C.-based AAXA Mortgage, which closed after an acquisition deal by an Illinois bank recently fell apart, will now work for Great Western Federal Savings Bank, WWAY-TV reported. Operating as the Wilmington branch of the bank, AAXA's chief executive officer,Greg Gianoplus, will serve as a Great Western branch manager.

MortgageDaily.com has tracked 27 mortgage-related closings so far in 2010.
photo of Dan Newberry
government photo
of Dan Newberry


next story

back to current headlines

Mortgage Broker News | Originator Newsletter
Stories about mortgage brokering and broker programs. Profiles of successful mortgage brokers. Articles about mortgage brokers who excel at other activities. Broker lawsuits and criminal broker activity.


FHA News | Government Resources | M o r t g a g e e Letters | FHA Statistics
FHA, VA and HECM mortgage news. HUD and G i n n i e news also. Originations, servicing and FHA approval.



Political Mortgage News | Mortgage Laws
Mortgage people in politics. Political contributions by mortgage companies. Coverage of political support by lenders and executives. GSE lobbying and issues.




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

MBS

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