Arizona
U.S. regulators close AmTrust and Tattnall banks
December 8, 2009 by Brian Pearl · Leave a Comment
Cleveland, Ohio’s Amtrust Bank was seized by regulators Friday, making it the fourth largest institution to go under in 2009. Five smaller institutions – three in Georgia and one each in Illinois and Virginia – were also shuttered over the weekend.
These latest six closings bring the total number of failed banks for the year to 130, and are expected to cost the FDIC’s already-depleted insurance fund a combined $2.4 billion. As DSNews.com previously reported, the agency’s reserve used to protect consumers’ deposits has slipped into the red – $8.2 billion in the hole at the end of the third quarter.
The failure of Amtrust alone will cost the FDIC an estimated $2 billion. Established in 1889 as The Ohio Savings and Loan Company, Amtrust was a nationwide originator of home mortgages and also offered construction and development loans. But according to a statement from its regulator, the Office of Thrift Supervision (OTS), Amtrust “was in an unsafe and unsound condition because of substantial loan losses, deteriorating asset quality, and insufficient capital.” OTS said a high level of AmTrust’s problem assets was attributable to residential and land acquisition, development, and construction lending concentrated in Florida, California, Arizona, and Nevada.
In an FDIC-assisted transaction, New York Community Bank in Westbury, New York agreed to acquire all of Amtrust’s $8 billion in deposits, wholesale borrowings of approximately $3 billion, and “certain assets,” Community Bank said in a press statement. According to the New York institution, these assets, totaling $11 billion, include performing single-family mortgage and consumer loans of approximately $6 billion which are subject to a loss-share agreement with the FDIC; cash of approximately $4 billion; and securities of approximately $1 billion.
Community Bank, though, was quick to point out that it declined to take on any non-performing loans serviced by AmTrust Bank or any other REOs; construction, land, or development loans; private-label securities, or mortgage servicing rights. The FDIC said it will retain these assets for later disposition.
The FDIC also transferred to New York Community Bank all qualified financial contracts to which AmTrust was a party, and said as part of the overall transaction, Community Bank has issued it a cash participant instrument, which the FDIC has until December 23 to exercise, allowing it to obtain shares of common stock in Community Bank.
Georgia leads the nation with the most bank collapses in 2009. Regulators closed three more institutions in the state on Friday, bringing that total to 24 for the year.
The Buckhead Community Bank in Atlanta, Georgia was acquired by State Bank and Trust Company of Macon, Georgia. The Buckhead Community Bank had six branches in Georgia operating under various names. State Bank also assumed all of the failed institution’s $838 million in deposits and total assets of $874 million. The FDIC estimates the cost to its deposit insurance fund will be $241.4 million.
State Bank and Trust Company also took over the operations of First Security National Bank in Norcross, Georgia. First Security had four branches, deposits of $123 million, and total assets of $128 million. The FDIC said it expects First Security’s failure to cost $30.1 million.
The Tattnall Bank of Reidsville, Georgia was acquired by HeritageBank of the South. in Albany, Georgia. The Tattnall Bank had two branches, $47.3 million in deposits, and total assets of $49.6 million. Its failure is expected to cost the FDIC $13.9 million.
Illinois is second in the nation when it comes to failed banks, with 20 in 2009. Benchmark Bank in Aurora, Illinois is the latest institution to join that list. Chicago’s MB Financial Bank agreed to take over Benchmark’s five branches, its $181 million in deposits, and purchased approximately $139 million of its $170 million in assets. The cost of Benchmark’s collapse is estimated at $64 million.
Greater Atlantic Bank in Reston, Virginia was also closed by the OTS. The FDIC brokered a deal with Sonabank of McLean, Virginia, to acquire the failed institution’s five branches, its $179 million in deposits, and total assets of $203 million. The FDIC expects Greater Atlantic’s closure to cost its insurance fund $35 million.
Info Source: dsnews.com
Arizona
Top 5 Benefits of an FHA Loan
November 9, 2009 by jenniferlampe · Leave a Comment
- You can still barrow close to 97% of the total home value. You will have to have 3.5% reserved for a down payment
- The barrower doesn’t have to have an established credit history.
- FHA home loans can be used for new home purchase not just streamline refinance.
- There are no minimum credit score requirements. If you have 620 or more you are a candidate.
- FHA has a 203(K) loan program for homes that are in need to be fixed up. Great for investments.
Jennifer Lampe specializes in FHA loans, mortgage loans, and refinances loans in Surprise, Glendale, Peoria and most areas in Phoenix Arizona. I am licensed to do loans in 48 states, contact me today for a free analysis.
Arizona
Required documents for getting an FHA mortgage home loan in Surprise Arizona
November 9, 2009 by jenniferlampe · Leave a Comment
The following is a list of documents that most likely will be required by the lender to process your FHA mortgage when a
· One full month’s worth of paystubs showing Year to Date earnings
· Last 2 years W-2’s
· For Self Employed Borrowers; Last 2 years tax returns with all schedules
· Last two months bank statement
· Current statements that identifies all investment accounts with all pages
· Written explanation for any credit derogatories on your report
· If filed Bankruptcy, a copy of the discharge paperwork
· Copy of your Drivers License and Social Security Cards
· Name, Address and phone number of your Landlord for the past 12 months
· Copy of your Sales Contract with Listing and Selling Agent phone Numbers
Contact me for more information and to discover if FHA is right for your next home loan.
Jennifer Lampe specializes in FHA loans, mortgage loans, and refinances loans in Surprise, Glendale, Peoria and most areas in Phoenix Arizona. I am licensed to do loans in 48 states, contact me today for a free analysis.
Arizona
FHA Verses Conventional
November 9, 2009 by jenniferlampe · Leave a Comment
There are several advantages in FHA over Conventional home loans, the main reason is the credit qualifying criteria for the barrower, and it’s not as strict as with the conventional loan financing. The down payment required is much less and of the tax credit is a bonus when it comes to first time homebuyers.
One plus with FHA loans is that it will allow the borrower who has had a few “credit problems” or those without much of a credit history to buy a home. An FHA Underwriter will require a reasonable explanation of these derogatories, but will approach a person’s credit history with common sense credit underwriting.
Contact me for more information and to discover if FHA is right for your next home loan.
Jennifer Lampe specializes in FHA loans, mortgage loans, and refinances loans in Surprise, Glendale, Peoria and most areas in Phoenix Arizona. I am licensed to do loans in 48 states, contact me today for a free analysis.
Arizona
Tax Credit Extended Until April 2010
November 9, 2009 by jenniferlampe · Leave a Comment
Great news for first time home buyers, the tax credit has been extended! The first time home buyer tax credit deadline has been extended for loans purchased through April 2010. The credit for first time home remains at $8000, and all other home buyers could be eligible for up to $6500.
Note, the income limits to qualify for the credits was increased too! This will allow for more buyers to qualify, and hopefully boost home purchase.
Jennifer Lampe specializes in FHA loans, mortgage loans, and refinances loans in Surprise, Glendale, Peoria and most areas in Phoenix Arizona. I am licensed to do loans in 48 states, contact me today for a free analysis.
