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Bank and Lender Go Down

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A financial institution on the East Coast was shut down by federal banking regulators, while a struggling firm in the Midwest is liquidating.

Slavie Federal Savings Bank was seized on Friday by the Office of the Comptroller of the Currency and closed down.

The company’s main office was in Bel Air, Md., and it operated a total of two branches, according to government data.

The 29-employee institution was established in 1900.

Included among Slavie’s $140 million in total assets were $70 million in residential loans, $17 million in commercial mortgages and $5 million in construction-and-land-development loans.

“The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” the regulator stated. “The OCC also found that the bank incurred losses that depleted its capital, the bank is significantly undercapitalized, and there is no prospect that the bank will become adequately capitalized.”

Slavie was hit with an OCC cease-and-desist order in January

The OCC appointed the Federal Deposit Insurance Corp. as receiver and, following a secret bidding process, the winning bid was awarded to Bay Bank, FSB — which picked up Slavie’s $111 million in deposits for an 0.20 percent premium and acquired $130 million of its assets.

The FDIC estimated that losses from the bank failure will reach nearly $7 million.

So far during 2014, nine FDIC-insured banks have failed.

Citigroup Inc.-subsidiary OneMain Financial has surrendered its New York mortgage license.

However, Citi spokesman Mark C. Rodgers explained in a written statement that the license surrender was just for a single servicing office in Buffalo.

Rodgers noted that OneMain — which previously operated as CitiFinancial Inc. — stopped originating mortgages in 2012.

Residential Finance Corp., which closed half of its 30 branches last year, is liquidating, Inside Mortgage Finance reported. The Columbus, Ohio-based firm reportedly experienced a huge third-quarter loss mostly due to the rapid rise in interest rates.

In all, Mortgage Daily has tracked the demise of 23 mortgage-related firms so far in 2013.

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