Mortgage Daily Logo

Bank Casualties Reach 40

Mortgage News

The failure of a Florida bank Friday brought to 40 the number of federally insured banking institutions to fail this year. In all, three financial institutions were seized last week.

Coastal Bank was taken over Friday by the Office of Thrift Supervision and handed to the Federal Deposit Insurance Corp. as receiver. The 12-year-old institution had just 28 employees.

“Coastal Bank, which reported net losses in 2008, 2009 and 2010, was critically undercapitalized,” the OTS stated.

The Cocoa Beach, Fla.-based bank had $124 million in deposits and $129 million in assets –all which were taken over by Premier American Bank, N.A. Real estate holdings amounted to $34 million, while $45 million in commercial mortgages were owned and $16 million in construction-and-land-development assets were also on the books. A loss-share agreement was reached with the FDIC on $108 million of the assets.

A $13 million hit is expected to the Deposit Insurance Fund because of Coastal’s demise — the 40th FDIC-insured bank failure this year.

Also last week, two credit unions were thrown into conservatorship by the National Credit Union Administration. The regulator installs expert management at conserved credit unions to correct the deficiencies as regular service continues.

One of the collapsed institutions was Valued Members Federal Credit Union. The Jackson, Miss., credit union serves 2,030 members in the Jackson area. It was founded in 1957 and has just $9 million in assets.

The second credit union placed into conservatorship was Hmong American Federal Credit Union in St. Paul, Minn. The 716-member firm had less than $3 million in assets.

Mortgage Daily has tracked to demise of 12 credit unions so far during 2011. In all, 59 mortgage-related entities have been closed down or failed so far this year.

Related Posts

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Third-Quarter 2012 Mortgage Litigation Index

Lawsuits involving excessive fees, servicing fees and loan fees beyond state maximums. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Fannie Mae and Freddie Mac Orangeburg County, Richland County, South...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Net Branch Lawsuits

Litigation involving net branch operations. Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story PHH Mortgage Corp. Mathews Supreme Court of Virginia na Court held that the term "branch office" includes not only...

Centex Home Equity Announces Name and Brand Change to National Mortgage, LLC

Whistleblower Lawsuits

Litigation related to loan servicing, including escrow issues, transfer of servicing and servicing borrowers in bankruptcy and foreclosure.   Defendant Plaintiff Court Amount Overview Case Title Case Number Date Filed Date of Activity Link to Story Bank of...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming paperwork has been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and furniture need to...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand-new mortgage loan can be a difficult task, especially for first-time homeowners.   After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first...

Newsletter

Don’t worry, we don’t spam