Firm Abandons Mortgage Lending for Energy
An Indiana-based firm is closing its mortgage originations business to focus on energy in the Middle East. More than 100 loss-mitigation employees are impacted from the decision.
Freedom Financial Mortgage Corp will end mortgage operations on Dec. 31, an announcement from Freedom Financial Holdings Inc. today indicated. The board approved an authorization to divest ownership in the 12-year-old subsidiary.
Major mortgage industry changes have left the once viable company in an unprofitable business model, Freedom Financial Chief Executive Officer Brian Kistler said in the statement.
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200 Mortgage Fatalities This Year
The number of mortgage-related operations to close so far during 2009 has hit 200 -- more than any year since MortgageDaily.com began tracking the data. IBERIABANK acquired more than $3 billion in assets from two of three failed banks Friday -- including nearly a billion dollars in residential mortgages.
Mortgage Mergers Jump
In addition to 18 bank merger transactions, nearly 10 new deals to acquire mortgage lenders and default service providers emerged. One of the acquirers is on the prowl for more targets.
Cost of Friday's Failures: $1.5 Billion
Five banks with assets of more than $11.5 billion failed Friday and are expected to cost the federal insurance fund for bank deposits more than $1.5 billion. A California-based institution is responsible for most of the cost.
15 Casualties in Deadly Week
In addition to one net branch, two wholesale lending operations and two credit unions that were closed down last week, nine banks failed on Friday.
Small Mortgage Firms Joining Bigger Companies
Stiffer regulations are driving some independent mortgage firms to become part of bigger lenders or financial institutions. In addition, mortgage service providers are joining the merger movement. Meanwhile, former executives of Bear Stearns & Co.'s mortgage unit have joined a new Arizona lender.
Fast Pace of Bank Mergers to Pick Up
Nearly 20 acquisition deals have recently been negotiated by U.S. financial institutions. But despite the increase in activity this year, one analyst predicts that the pace of bank mergers will pick up substantially in the second half of next year. Some of the recent deals involve investment firms.
$350 Million in Losses from Friday's 7 Bank Failures
Seven bank failures Friday are expected to deplete the Deposit Insurance Fund by more than $350 million. Three of the banks were in Florida.
No. 100 Fails
Bank regulators just seized a small Florida bank -- marking the 100th federally insured bank to fail this year. The tally for mortgage-related failures also reached a new milestone.
Bank Orders Fly
During the past three weeks, federal bank regulators disclosed nearly 40 regulatory actions against U.S. financial institutions -- including one that has since failed.
