Among several mortgage-related businesses to recently call it quits was a bank that was 134 years old, three credit unions and a correspondent lender.
On Friday, Maryland Acting Commissioner of Financial Regulation Gordon M. Cooley took possession of NBRS Financial Bank.
The action reportedly followed several years of losses caused by nonperforming assets at the Rising Sun, Md., financial institution.
NBRS was established in 1880. There were 54 employees on staff as of June 30.
In January 2010, NBRS and parent Rising Sun Bancorp entered into a formal agreement with the Federal Reserve Bank of Richmond and Maryland’s Division of Financial Regulation. In addition, it was hit with a prompt corrective action in April of this year.
The Federal Deposit Insurance Corp., which the state named receiver, held a private auction process and awarded the winning bid to Howard Bank, which will assume all of the failed bank’s $183 million in deposits for a 1.19 percent premium.
Howard bank additionally acquired all of NBRS’ $188 million in assets — including $43 million in residential loans, $45 million in commercial real estate loans and $4 million in construction-and-land-development loans.
The FDIC estimates that its Deposit Insurance Fund will be depleted by $24 million as a result of the failure — the 15th so far this year.
Earlier this month, County & Municipal Employees Credit Union was liquidated by the Texas Credit Union Department and handed over to the National Credit Union Administration as liquidating agent.
Navy Army Community Credit Union took over the Edinburg, Texas, financial institution’s 7,73 members, all of its $40 million in assets and its shares.
“The Texas Credit Union Department made the decision to liquidate County & Municipal Employees Credit Union and discontinue operations after determining the credit union was insolvent with no prospect for restoring viable operations on its own,” the NCUA statement said.
A month earlier, Republic Hose Employees Federal Credit Union in Youngstown, Ohio, was liquidated by the NCUA. Like with NBRS, Republic Hose was insolvent and had no chance of restoring viable operations.
Republic Hose had just 455 member and less than $1 million in assets.
Earlier in September, the Iowa Credit Union Division placed Louden Depot Community Credit Union into receivership and named the NCUA receiver. The Fairfield, Iowa, institutions had 790 members and $5 million in assets.
The NCUA additionally noted that Louden, which was chartered in 1954, had no chance of becoming economically viable again.
Community 1st Credit Union assumed most of Louden’s shares, assets, loans and members.
Mortgage Daily has tracked the failure of nine credit union failures so far during 2014.
The acquisition of IBEW Local 816 Federal Credit Union, which was liquidated in July by the NCUA, was completed by C-Plant Federal Credit Union, the regulator announced in August.
The correspondent lending division of Affiliated Mortgage Co. was closed down on Aug. 15, according to client letter reported by Rob Chrisman. The decision to bail was attributed to “significant changes within the mortgage industry that have impacted our business over the past several years.”
Affiliated’s correspondent unit was the 13th non-bank mortgage firm tracked by Mortgage Daily to close down this year.
In all, Mortgage Daily has tracked 37 mortgage-related entities that have failed or closed down so far during 2014.
