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.



5 Financial Institutions Fail Friday

First Bank of Beverly Hills, First Bank of Idaho both fail

April 27, 2009

By Mortgage Daily staff


Including the seizure of three financial institutions already reported on Friday, banking regulators closed down a total of five firms Friday. The Federal Deposit Insurance Corporation expects to lose nearly $700 million from the failures.

The slaughter started with Eastern Financial Florida Credit Union, which was closed down by the Florida Office of Financial Regulation. That was followed by the seizure of American Southern Bank by the Georgia Department of Banking and Finance and the closing of Michigan Heritage Bank by the Michigan Office of Financial and Insurance Regulation.

After the story about those three institutions was published, the California Department of Financial Institutions announced it closed First Bank of Beverly Hills in Calabasas, Calif., citing inadequate capital.

The department said it "has been closely monitoring the bank and had ordered it to increase its capital reserves to a safe and sound level. But efforts by the bank to do so were unsuccessful."

The FDIC, which was appointed receiver, had issued a cease-and-desist order against the bank on Feb. 19. Deposits stood at $1 billion as of Dec. 31, 2008, and the FDIC said insured depositors will be paid out.

First Bank held $1.5 billion in assets -- though it employed only 35 people. Residential loans accounted for $15 million of its assets, while commercial mortgage holdings were $678 million and construction-and-land-development loans were $148 million.

Losses from First Bank's failure are expected to cost the FDIC $394 million.

First Bank, established in 1979, was the 28th FDIC-insured failure this year.

No. 29 was First Bank of Idaho, FSB -- which was closed by the Office of Thrift Supervision.

"The bank ... was in unsound condition and unable to continue operating due to severe liquidity strains, deteriorating asset quality, negative earnings and declining capital," the OTS explained in a statement. "The bank focused its business in resort communities where eroding economic conditions in the last year caused rising loan delinquencies and the need to significantly increase loan loss provisions."

U.S. Bank will assume $374 million of the Ketchum, Idaho-based institution's deposits for an 0.55 percent premium. But U.S. Bank isn't acquiring another $113 million in brokered deposits.

Assets ended last year at $489 million, and U.S. Bank only agreed to purchase $18 million of the assets. Residential holdings were $116 million, commercial mortgage holdings were $112 million and construction-and-land-development loans holdings were $166 million.

The failure of First Bank of Idaho is expected to deplete the Deposit Insurance Fund by $191 million.

In all, the expected hit to the FDIC for all of Friday's failures is $698 million.

First Bank of Idaho was founded in 1997, operated eight branches and employed 116 employees.

As part of research tied to the FraudBlogger Index, MortgageDaily.com identified last year's bankruptcy and failure of Financial Mortgage Inc. The company's owner, Vijay K. Taneja, was sentenced to 84 months in prison over $33 million in mortgage fraud losses at Franklin Bank, First Tennessee Bank, Wells Fargo Bank and EMC Mortgage Co.

Another failed company identified during research for the index was Triduanum Financial Inc. The owner of the company, Christopher Warren, claims he has originated $1 billion in fraudulent loans. Warren was captured at the Canadian border with $70,000 stuffed in his boots.

So far during 2009, MortgageDaily.com has tracked 62 mortgage-related closings and failures.


Related:
3 Fail, Big Commercial Lender on the Rocks
Three federally insured financial institutions failed today, and the third largest commercial mortgage servicer is on the verge of failing.


next story

back to current headlines


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.


Bank news


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

www.mortgagebranchmanagerjobs.com
Logout forgot
password?

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