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.



Bank Casualties to Exceed 1,000

Recent mortgage-related company closings

February 23, 2009

By MortgageDaily.com staff


A banking analyst projects more than 1,000 bank failures during the next five years, while the Federal Deposit Insurance Corporation expects the cost of failures to exceed $40 billion. The latest mortgage-related casualties include an Oregon bank and an FHA wholesaler.

The Oregon Department of Consumer and Business Services closed down Silver Falls Bank on Friday and appointed the FDIC receiver, a news release said.

The Silverton, Ore., bank had 35 full-time employees working from three branches.

Another Oregon institution, Citizens Bank, has assumed all of Silver Falls' $116 million in deposits as of Feb. 9 at par. Citizens also purchased $13 million of Silver Falls' $131 million in assets.

Included in the failed bank's assets were $16 million in residential mortgages as of Sept. 30. In addition, Silver Falls held $80 million in construction and land development loans, $7 million in multifamily loans and another $20 million in commercial mortgages.

"Silver Falls Bank had been experiencing critically low levels of capital, and ultimately, became insolvent," Oregon said in its own announcement. "The bank's problems resulted primarily from a heavy dependence on commercial construction loans, many of which were of poorer quality and were not performing or being repaid when the economy deteriorated."

A cease-and-desist order was issued against Silver Falls on Nov. 25 by the FDIC.

Silver Falls initiated a stock offering last month -- raising $525,000, Oregon said. Those funds are being held in escrow and will be returned to investors.

The FDIC expects the failure to cost the Deposit Insurance Fund $50 million.

Between 2008 and 2013, bank failures are expected to cost the FDIC in excess of $40 billion, FDIC Chief Operating Officer John F. Bovenzi testified this month before the House financial services committee.

Silver Falls, which was founded in 2000, was the 14th FDIC-insured bank, the 16th financial institution and the 27th mortgage-related company to fail this year, according to data tracked by MortgageDaily.com.

RBC Capital Markets analyst Gerard Cassidy forecast this month that more than 1,000 banks might fail during the next three to five years, Marketwatch reported. Last year, Cassidy projected just 200 to 300 bank failures -- but the environment has deteriorated since then.

Among the highest risk institutions from the 50 largest U.S. commercial banks are Sterling Financial of Spokane, Wash.; Colonial BancGroup in Montgomery, Ala.; and Puerto Rico-based Popular Inc. No. 4 is Huntington Bancshares.

The risk rankings were reportedly based on the "Texas Ratio," which measures credit problems as a percentage of available capital.

The growing list of bank casualties prompted the American Credit Union Mortgage Association to issue a statement this month highlighting the security of the nation's credit unions.

"Credit unions are among the few financial institutions that have mortgage money to lend to struggling consumers while at the same time operating for the benefit of their members," the trade group said. "For the most part, credit unions will not be included with the growing list of financial institutions paying large salary bonuses to executives or throwing large parties at the expense of the financial institution or the American taxpayers."

Perfect FHA -- which is the wholesale division of Perfect Mortgage -- indefinitely eliminated third-party originations, according to a Feb. 16 broker announcement posted on its Web site. The move was immediately effective, and the current pipeline of loans will not be funded.

Around 25 account executives reportedly worked at the company, which touted itself as an expert in manual underwriting on government-insured loans.

"Perfect FHA will continue to service our portfolio and will enforce all broker agreements," the announcement stated.

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.


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.



Wholesale Lending News | Directory | P r i cing Engine | Originator Newsletter
News about wholesale lenders, correspondent lenders and wholesale mortgage lending programs. Alt-A, subprime and other niche loan programs. Lawsuits between wholesalers and brokers.




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