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200 Mortgage Fatalities This Year

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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.

Century Bank was closed by the Office of Thrift Supervision Friday, a news release indicated. The OTS said the 133-employee Sarasota, Fla., bank “was critically undercapitalized and in an unsafe and unsound condition to conduct business.” IBERIABANK assumed all of the failed bank’s $631 million in deposits for a 1.5 percent discount.

IBERIABANK acquired $706 million of Century’s $728 million in assets — including $421 million in home loans, nearly $100 million in commercial mortgages and $135 million in construction-and-land-development loans — from the Federal Deposit Insurance Corporation, which is named receiver on all federally insured banks that fail. The FDIC will share in losses on $656 million of the assets — bringing its expected losses on the 29-year-old institution to $344 million.

Century was the 121st FDIC-insured bank failure this year.

Following Century was Orion Bank, which was closed by the Florida Office of Financial Regulation. The bank, which was founded in 1977 and employed 260 people, was hit with a Sept. 18 cease-and-desist order from the Federal Reserve Bank of Atlanta and the State of Florida Office of Financial Regulation. IBERIABANK also assumed Naples, Fla.-based Orion’s $2.1 billion in deposits as of Oct. 31 for a 1.5 percent discount.

In addition, IBERIABANK acquired $2.4 billion of Orion’s $2.7 billion in assets, with the FDIC agreeing to share in losses on $1.9 billion of the assets. As of June 30, Orion owned $551 million in residential loans, $543 million in commercial mortgages and $732 million in construction-and-land-development loans.

Next, the Office of the Comptroller of the Currency seized Pacific Coast National Bank, which the regulator noted “had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices.” Sunwest Bank assumed all of the San Clemente, Calif., bank’s $131 million in deposits as of Aug. 31.

Sunwest additionally acquired all of 28-employee Pacific Coast’s $134 million in assets — including $7 million in one- to four-unit loans, $57 million in commercial mortgages and $22 million in construction-and-development loans. The FDIC expects the Deposit Insurance Fund to be depleted by $27 million because of Pacific Coast’s failure.

The OCC had issued an August cease-and-desist order against four-year-old Pacific Coast — which was the third FDIC-insured failure Friday and the 123rd this year.

New South Federal Savings Bank suspended mortgage originations as it reported disappointing third-quarter earnings, published reports indicated.

The closing this month of Financial Resources Mortgage Inc. is being investigated by New Hampshire Banking Commissioner Peter Hildreth, according to published reports. The state is reportedly concerned with private data.

In all, MortgageDaily.com has tracked 200 mortgage-related closings during 2009 — more than any other year since 1998 — the earliest data collected by MortgageDaily.com.

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