twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to 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

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

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

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

Press Releases
Reports and announcements from

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









site map
The Mortgage Graveyard
Failed, closed and a c q u i r e d mortgage-related entities.

Excessive Asset Concentration Cause Institutions' Failures

Recent bank and credit union failures

Oct. 1, 2011

By staff

Texas saw its first bank failure in more than a year. The bank had a high concentration of commercial mortgages. A report on a previously failed corporate credit union indicated that its assets were too concentrated in private-label residential mortgage-backed securities. Both firms were based in the same city.

The Texas Department of Banking closed First International Bank on Friday. The last bank to fail in the Lone Star State was in February 2010.

"The bank was closed due to poor oversight of lending activities that depleted its capital, leaving the bank critically undercapitalized," Texas Banking Commissioner Charles G. Cooper said in an announcement. "Efforts to raise additional capital were unsuccessful, resulting in the bank's closure."

First International was established in October 1991. The company employed around 68 people at the time of its demise.

The Plano-based institution had $209 million in deposits as of June 30. Total assets stood at $240 million and included just $7 million in residential loans and $22 million in construction-and-development loans. But its commercial real estate loans stood at a whopping $144 million -- accounting for a concentrated share of its overall assets.

The Federal Deposit Insurance Corp., which was named receiver of First International, issued a prompt corrective action against the bank in April and a cease-and-desist order in March 2010.

The FDIC made a deal with American First National Bank to assume all of the deposits and acquire all of the assets of the failed bank.

Factoring in a $54 million loss-sharing agreement, the FDIC projects that its Deposit Insurance Fund will be depleted by $54 million as a result of First International's demise -- the 74th FDIC-insured bank failure this year.

Mortgage Daily has recorded the closing or failure of 105 mortgage-related entities so far this year.

A report from the National Credit Union Administration Office of Inspector General found that the management and board of directors of failed Southwest Corporate Federal Credit Union neglected to implement appropriate risk management practices that were needed to limit or control significant risks in its investment strategy.

The NCUA took control of the Plano, Texas-based credit union in September 2009. Losses to the NCUA's Stabilization Fund as a result of the financial institution's failure are expected to ultimately reach $141 million.

"Specifically, although management invested in high investment grade securities, management implemented an aggressive investment strategy with high limits in place that allowed for a significant concentration of investments directly in privately-issued residential mortgage backed securities, and additional indirect exposure through U.S. Central Federal Credit Union's investments in RMBS," the report stated. "Management's actions resulted in substantial exposure to privately-issued RMBS, which resulted in significant concentration risk and left Southwest vulnerable to significant credit, market, and liquidity risks."

next story

back to current headlines

Bank news

Credit Union news

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Financial Regulation News | Mortgage Regulations
Bank and mortgage regulators, regulations and regulatory actions. Coverage of regulatory legislation and testimony.
Logout forgot

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