Mortgage Daily Logo
mortgage news from industry experts

Bank Orders Ease in Q3

Financial institutions saw regulatory orders and actions by federal banking regulators ease for the first time in at least four quarters, according to the Third-Quarter 2009 Regulatory Actions report from MortgageDaily.com. But more cease-and-desist orders were issued.

The report reflects orders and other actions against federally insured institutions by the Federal Deposit Insurance Corporation, the Federal Reserve, the National Credit Union Administration, the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

During the third quarter, 257 actions were tracked, decreasing from 263 in the second quarter.

MortgageDaily.com began tallying the quarterly totals in the third-quarter 2008, when 111 actions were tracked — and this was the first quarterly decline during that period.

Actions by Quarter

Q3 2009 Q2 2009 Q3-2008
257 263 111


full 3rd quarter listings

“While the data indicate we’ll continue to see an elevated level of bank failures — with this year’s pace at more than 50 per quarter — it also suggests that the rate of bank failures might be near or past the peak,” said MortgageDaily.com Founder and Publisher Sam Garcia. “One big caveat, however, is residential delinquency that is expected to continue rising until at least summer. The outlook for commercial mortgage defaults is even more bleak.”

Despite the quarterly decline in overall orders, cease-and-desist orders climbed to 98 from the second quarter’s 86. Bank failures are often preceded by cease-and-desist orders.

Also higher were the number of formal agreements, rising to 67 from 64, and removal-and-prohibition orders, which climbed to 31 from 24.

Banks, however, faced fewer civil money penalties.

Type of Order Q3 2009
Agreement (written and formal) 67
Capital Directive 1
Cease-and-Desist 98
Civil Money Penalty 49
Prompt Corrective Action 10
Removal-and-Prohibition 31
Termination of Insurance 1
Total 257


full table by order type

Actions by the FDIC drove the third-quarter decline, falling to 143 from the prior quarter’s 151. Still, FDIC activity was well above 67 actions tracked a year earlier.

OCC activity also eased from the second quarter, but Fed actions were up by half.

Regulator Q3 2009
Federal Deposit Insurance Corporation 143
Federal Reserve 58
Office of the Comptroller of the Currency 55
Office of Thrift Supervision 1
TOTAL 257


full table by regulator

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 home closing documents have 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...

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 mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION