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.



Mortgage Casualties Could Fall in 2010

Recent mortgage-related businesses to fail or close

Nov. 14, 2010

By MortgageDaily.com staff


Losses from the collapse of three banks on Friday are expected to exceed $0.2 billion. The number of federally insured banks to fail this year has already surpassed 2009's full-year tally. But a bigger decline in the number of non-bank mortgage-related failures and closings has made it possible that this year will see an overall decrease in mortgage-related casualties.

Officials with the Georgia Department of Banking and Finance and agents of the Federal Deposit Insurance Corp. walked into Tifton Banking Co. on Friday afternoon and seized the six-year-old bank. The Tifton, Ga., firm had just 15 employees, $142 million in deposits and $144 million in assets -- including $26 million in home loans, $29 million in commercial mortgages and $26 million in commercial-and-development loans.

Georgia also seized Darby Bank & Trust Co. and, as with Tifton, handed it over to over to the FDIC as receiver. Darby employed 141 people, was founded in 1927 and had its headquarters in Vidalia, Ga. As of Sept. 30, deposits totaled $588 million, while $655 million in assets included $124 million in residential loans, $156 million in commercial real estate loans and $104 million in C&D loans.

An FDIC cease-and-desist order was issued in December 2009 against Darby, while the bank faced an FDIC civil money penalty in 2008.

Ameris Bank stepped in to acquire the two Georgia institutions. The FDIC agreed to a loss-sharing arrangement on $560 million of the assets -- pushing estimated Deposit Insurance Fund losses to $25 million on Tifton and $136 million on Darby.

Later in the day, the Superintendent of the Arizona Department of Financial Institutions seized Copper Star Bank and appointed the FDIC as receiver. The Scottsdale-based bank was established a decade ago. It had around 47 employees at the time of its demise, and had been hit with an FDIC cease-and-desist order in January.

"DFI and the FDIC have been coordinating the examination and supervision of this bank
for months" Arizona said in a news release. "DFI sought the receivership because the bank's financial condition was unsafe and unsound."

Stearns Bank, N.A., agreed to assume all of Copper Star's $190 million in deposits for a 1 percent premium. Stearns additionally acquired all of the failed bank's $204 million in assets including $25 million in consumer mortgages, $92 million in commercial mortgages and $33 million in C&D holdings. But the deal required the FDIC to share losses on $165 million of the assets.

The failure of Copper Star is expected to cost the FDIC $44 million.

In all, 146 FDIC-insured banks have failed so far this year -- more than during all of 2009 when just 140 banking institutions failed. Non-bank mortgage-related closings, though, have tumbled to just 18 this year from 69 for all of last year.

Including banks, credit unions and non-bank mortgage firms -- Mortgage Daily has tracked the closing or failure of 184 mortgage-related businesses so far during 2010. The level of Mortgage Graveyard activity thus far suggests the full-year 2010 total could end up lower than 2009's total.

Also on Friday, the National Credit Union Administration announced that Members United Bridge Corporate
Federal Credit Union and Southwest Bridge Corporate Federal Credit Union were created to assume the operations of Members United Corporate and Southwest Corporate. Bridge institutions are chartered to continue serving member credit unions and acquire the "good" assets of failed corporate credit unions.

The NCUA explained that the bridge credit unions will offer no new services, maintain an identical field of membership and provide new loans primarily for settlement purposes.

In 2007, Credit-Based Asset Servicing and Securitization LLC -- or C-BASS -- disclosed "an unprecedented amount of margin calls from" its lenders. The disclosure was prompted  by statements from MGIC Investment Corp., which had $516 invested in C-BASS LLC, and Radian Group Inc., which had a $518 million investment, indicating their 100 percent interest could be completely wiped out.

On Friday, C-BASS filed for bankruptcy protection in U.S. Bankruptcy Court for the Southern District of New York, Bloomberg reported. Listed debts exceeded $1.0 billion and assets were less than $0.1 billion.


In re Credit-Based Asset Servicing & Securitization LLC
Case No. 10-16040, Nov. 12, 2010 (U.S. Bankruptcy Court, Southern District of New York).


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.

www.mortgagebranchmanagerjobs.com
Mortgage Lawsuits News | Mortgage Litigation Index
Mortgage industry lawsuit news and mortgage litigation coverage. Stories about legal settlements, judgments and mortgage class actions.



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