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.

Firms Fail, File Bankruptcy

Recent company closings and bankruptcies

December 1, 2008

By staff

As home builders warn that bank failures are causing more damage to their business, three firms went bankrupt.

Downey Financial Corp., the former parent of failed Downey Savings and Loan Association, F.A., filed for Chapter 7 bankruptcy liquidation last week in U.S. Bankruptcy Court, District of Delaware. Downey was closed by banking regulators on Nov. 24. The Federal Deposit Insurance Corporation, which was named receiver, immediately sold the banking operations to U.S. Bank, N.A.

In the filing, Downey Financial said it only had between one and 19 creditors. Assets were listed at between $10 million and $50 million, while liabilities were estimated at between $100 million and $500 million. Downey's lawyers collected $50,000 to process the bankruptcy.

Ace Mortgage Funding LLC filed for a voluntary petition for Chapter 7 bankruptcy liquidation on Nov. 5. The Indianapolis-based broker, which said it originated more than $3 billion during 2006, shut down operations in October. Ace had been a defendant or plaintiff in 27 complaints filed in federal courts since early 2005.

In the bankruptcy filing, which was signed by Chief Financial Officer Joseph C. Czopek, Ace said it owed between 1,000 and 5,000 creditors between $1 million and $10 million. Assets were estimated at between $1 million and $10 million.

The National Association of Home Builders issued a statement last month warning that its members are facing major hurdles when the Federal Deposit Insurance Corporation takes over a failed bank -- losing sales in the process. The FDIC is delaying draws on homes that have already been sold and requiring new appraisals in some cases. The group said severe financing problems are proliferating among builders in Texas -- one of the strongest U.S. markets.

"Builders with outstanding loans that are placed under FDIC control are frequently unable to contact a decision maker to deal with routine but time-sensitive matters related to loan draws or extensions," NAHB President and Chief Executive Officer Jerry Howard said in the statement. "Some builders have encountered what seem to be arbitrary criteria on whether or not loans receive continued funding."

Howard said the problems are turning good loans into problem assets.

LandAmerica Financial Group Inc. announced last week that it filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District of Virginia in Richmond, Va. Included in the filing was subsidiary LandAmerica 1031 Exchange Services.

LandAmerica agreed to sell subsidiaries Lawyers Title Insurance Corp., Commonwealth Land Title Insurance Co. and United Capital Title Insurance Co. for $298 million to Fidelity National Title Insurance Co. and Chicago Title Insurance Co. The closing, expected to occur this month, is subject to bankruptcy court approval.

LandAmerica Chairman and CEO expressed deep disappointment over the bankruptcy in the announcement, while Fidelity Chairman William P. Foley II in another announcement called the transaction "an exciting opportunity."

Downey Financial Corp., Debtor
Case No. 08-13041-CC, Nov. 25, 2008 (U.S. Bankruptcy Court, District of Delaware)

Ace Mortgage Funding, LLC, Debtor
Case No. 08-12645-CSS, Nov. 5, 2008 (U.S. Bankruptcy Court, District of Delaware)

LandAmerica Financial Group, Inc., Debtor
(U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond, Va.

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.

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

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