Mortgage Daily Logo

Banks Face Growing Regulatory Actions

Mortgage News

PRESS RELEASE

Banks Face Growing Regulatory Actions

DALLAS — (Sept. 8, 2009) /PRNewswire/ Regulatory orders against financial institutions jumped 49% during the second quarter, according to an analysis of activity by MortgageDaily.com. A surge in civil money penalties, cease-and-desist orders and prohibition orders fueled the increase.

U.S. institutions, their employees and former employees faced 263 regulatory actions during the second quarter, based on coverage at MortgageDaily.com. Activity included orders issued by the FDIC, Federal Reserve, National Credit Union Administration, OCC and OTS.

Actions jumped 49% from the first quarter. The majority of orders were issued by the FDIC.

Q2 2009 Q1 2009
263 actions 177 actions

Bank failures are often preceded by cease-and-desist orders. During the latest period, such orders jumped one-third to 86.

Financial institutions entered 64 formal agreements, up 39% from the first quarter. Written and formal agreements often require conservation of capital and improvement in operations. In some cases, experienced executives must be appointed to senior lending positions. The fed and the OCC were each responsible for around half of second-quarter agreements.

Regulators issued 60 civil money penalties in the second quarter, climbing from 33. Including restitution and settlements, the latest period included $43.8 million in civil money penalties. The FDIC issued 90 percent of the penalties.

“Despite signs that delinquency might be near a peak, the number of regulatory orders has consistently risen during the past four quarters — suggesting an increase in upcoming bank failures,” said MortgageDaily.com Founder and Publisher Sam Garcia. “So far, nearly two dozen of the banks listed in the second-quarter report have failed.”

Type of Order #
Agreement 64
Cease-and-Desist 86
Civil Money Penalty 60
Prohibition 15
Prompt Corrective Action 10
Removal-and-Prohibition 24

The FDIC was responsible for 151 of second-quarter orders, with nearly half being cease-and-desist. The OCC issued 56 orders, and the fed handed out 38.

Regulator #
Federal Deposit Insurance Corporation 151
Federal Reserve 38
National Credit Union Administration 12
Office of the Comptroller of the Currency 56
Office of Thrift Supervision 6


The full Q2 report is available to MortgageDaily.com subscribers at:
https://www.mortgagedaily.com/RegulatoryQ2Report090809.asp

Complete regulatory news is available at:
https://www.mortgagedaily.com/news/Regulatory.asp

About MortgageDaily.com
Founded in 1998, https://www.mortgagedaily.com provides online mortgage news and analysis for the mortgage industry. Around 1 million news pages are viewed monthly at MortgageDaily.com and its affiliate publications.

CONTACT:
Sam Garcia
SamGarcia@MortgageDaily.com
214.521.1300
3811-700 Turtle Creek Blvd.
Dallas, TX 75219

Source: MortgageDaily.com

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Mortgage Servicer Portfolios

Mortgage Servicer Portfolios servicing news | mortgages outstanding statistics | foreclosure news   Servicing Portfolios as of 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 Residential Servicing Portfolios by Servicer...

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