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/
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.

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.


Federal Regulators Busy

Recent earnings and corporate activity

August 13, 2008

By SAM GARCIA


As reports of massive mortgage-related losses continue to pour in, federal regulators are busy investigating and issuing orders against financial firms. One thrift reported that a recent increase in withdrawals has subsided -- though a resumption could have a negative impact on capital.

The Federal Trade Commission has issued to Countrywide Financial Corp. civil investigative demands for various documents and items of information in connection with an investigation related to its loan servicing activity, a filing Monday with the Securities and Exchange Commission said. The Bank of America Corp. subsidiary said it has a solid defense against the investigation but cannot estimate what potential losses may result or whether they may be material.

The SEC is conducting an informal investigation of National City Corp., a filing Friday said. The regulator has requested documents in connection with loan underwriting experience, dividends, bank regulatory matters and the sale of First Franklin Financial Corp. to Merrill Lynch in September 2006. No allegations of illegal actions have been made as of yet.

The Office of the Comptroller of the Currency announced yesterday that cease-and-desist orders were issued against Vineyard Bank N.A. in Rancho Cucamonga, Calif.; The First National Bank of Logan, Logan, Iowa; and T Bank N.A., Dallas.

OCC said civil money penalty orders were issued against Intercredit Bank N.A. in Miami; Richard Abrams at Seaway National Bank of Chicago; Phillip C. Carlson, Carolyn M. Helmig, Charles W. Helmig III, David C. Holly, Hubert J. Mennie and Daniel J. Wujek, all of The Granville National Bank in Granville, Ill.; Preston G. Smith, The First National Bank in Mulberry Grove, Ill.; and Jeffrey S. Ray, First National Bank of Muhlenberg County in Ky.

Formal agreements were reached with Granite Community Bank N.A. in Granite Bay, Calif.; Cornerbank N.A. in Winfield, Calif.; First National Bank in Chisholm, Minn.; Landmark Community Bank N.A. in Isanti, Minn.; Standing Stone National Bank, Lancaster, Ohio; Home National Bank in Blackwell, Okla.; Border Capital Bank N.A. in McAllen, Texas; and The First national Bank of Trenton, in Trenton, Texas.

In addition, OCC issued removal and prohibition orders against Liu H. Saephan at Bank of America N.A. in Charlotte, N.C., and terminated formal agreements against The First National Bank - Fox Valley in Neenah, Wis., and Fidelity National Bank in Medford, Wis.

The National Association of Federal Credit Unions issued a statement rebutting a Wall Street Journal story that suggested declining values on mortgage securities could prompt a loss of confidence in the sector and even potentially trigger a run on deposits. NAFCU clarified that the article focused on corporate credit unions, which serve other credit unions, and that their investments are limited to the most highly rated securities. The group went on to say that consumer credit unions are solid and operating with low delinquency.

BankUnited Financial Corp. reported Friday a $146 million loss before taxes for its fiscal third quarter ended June 30, compared to a $102 million loss in the prior quarter $23 million profit a year earlier. The loss was primarily attributable to a $130 million loan-loss provision.

The Coral Gables, Fla.-based company said it is shrinking its residential mortgage loan portfolio. Residential loans on its balance sheet were $9.5 billion on June 30, while specialty consumer mortgages were $0.8 billion and home-equity loans and lines-of-credit totaled $0.5 billion. Loans serviced for others ended the period at $2.1 billion.

"This quarter was a mix of strong results from our core banking operations offset by continued deterioration in the mortgage portfolio," BankUnited Chairman and CEO Alfred R. Camner said in the report.

In an SEC filing Monday, Wachovia Corp. increased its second-quarter loss to $9.1 billion from $8.9 billion originally reported on July 22. The increase reflected the effect of recent and active settlement discussions with securities regulators of investigations relating to auction-rate securities.

Radian Group Inc. reported Monday a $393 million second-quarter loss, worse than the $197 million loss a year earlier. The latest period reflected a pre-tax first-lien premium deficiency reserve of $422 million. The reserve reflects Radian's best estimate of the present value of expected future losses not already included in the June 30, 2008, loss reserves, net of related future premiums.

JPMorgan Chase & Co. said in an SEC filing Monday that it has already incurred $1.5 billion in third-quarter losses as a result of spreads on mortgage-backed securities and loans that have sharply widened. The New York-based firm said its investment bank's exposure to prime and Alt-A mortgages was $19.5 billion and its subprime exposure was $1.9 billion.

"These mortgage exposures could be adversely affected by worsening market conditions, further deterioration in the housing market and market activity reflecting distressed sellers," JPMorgan said in the filing.

UBS reported yesterday a second-quarter loss of CHF 358 million (U.S. $330 million). Results were impacted by realized and unrealized losses of (U.S.) $5.1 billion on legacy risk positions, mainly on exposures related to U.S. residential real estate related securities and other credit positions.

Standard & Poor's Ratings Services announced Monday that it lowered Fannie Mae's risk-to-the-government rating to A from A+, reflecting a worsening financial profile. The rating measures Fannie's credit worthiness as if there were no government support. The Washington, D.C.-based company's preferred stock and subordinated debt rating were lowered to A- from AA-.

S&P cited the same logic in its downgrade Monday of Freddie Mac's risk-to-the-government rating to A from AA- and its downgrade of Freddie's subordinated debt and preferred stock rating to A- from AA-.

Downey Financial Corp. said in an SEC filing Monday that it experienced elevated levels of deposit withdrawals at the end of the second quarter. But the situation has reversed, and the Newport Beach, Calif.-based company has since experienced deposit inflows. Downey warned that if elevated levels of net deposit outflows resume, the usual sources of liquidity could become depleted, forcing it to raise additional capital -- which it said could be difficult in the current environment.


Office of the Comptroller of the Currency  Order Numbers 2008-068 through 2008-091


Sam Garcia worked in mortgage lending for twenty years prior to becoming publisher of MortgageDaily.com.

e-mail: [email protected]


GSE News | Fannie/Freddie Share Statistics
Fannie, Freddie and FHLB news. Coverage of government sponsored enterprise regulation, operations and litigation.


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