As of September 11th this year’s running tally of failed banks now stands at 103, including banks and credit unions that have been closed, acquired or placed into conservatorship.

Corus Bank, a $7 billion Chicago-based institution, was one of three banks closed by federal regulators on Sept. 11. Venture Bank of Lacy, WA. and Brickwell Community Bank of Woodbury, MN. were also closed and acquired by other institutions.

In June 2009, Corus Bank had total assets of $7 billion and total deposits of approximately $7 billion. MB Financial Bank will pay the FDIC a premium of 0.2 percent to assume all of the deposits of Corus Bank.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.7 billion.

Corus Bank, National Association, Chicago, Illinois, was closed by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC entered into a purchase and assumption agreement with MB Financial Bank, N.A. to assume all of the deposits of Corus Bank, N.A.

Depositors of Corus Bank will automatically become depositors of MB Financial Bank.

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Mortgage Loan Compliance®

www.ml-compliance.com

Commercial and Residential Forensic Loan Audits – Get The Facts on Your Loan and Protect Your Rights!

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Between the first and second quarters, the 30-plus day delinquency rate on loans held in commercial mortgage-backed securities rose 2.04 percentage points to 3.89%.

Delinquency rates are continuing to increase for all commercial/multifamily mortgage investor groups, according to the most recent Commercial/Multifamily Delinquency Report from the Mortgage Bankers Association.

The 60-plus day delinquency rate on loans held in life company portfolios rose 0.03 percentage points to 0.15%. The 60-plus day delinquency rate on multifamily loans held or insured by Fannie Mae rose 0.17 percentage points to 0.51%.

“The economic recession drove the latest surge in commercial and multifamily delinquency rates during the second quarter,” said Jamie Woodwell, Mortgage Bankers Association’s vice president of commercial real estate research.

The 90-plus day delinquency rate on multifamily loans held or insured by Freddie Mac rose 0.02 percentage points to 0.11%. The 90-plus day delinquency rate on loans held by FDIC-insured banks and thrifts rose 0.64 percentage points to 2.92%.

“Lower levels of employment, the pullback by consumers and other aspects of the slowdown translated into a difficult operating environment for many income-producing properties. That in turn has led to increased stress on the loans those properties support,” Mr. Woodwell added.

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Mortgage Loan Compliance®

www.ml-compliance.com

Commercial and Residential Forensic Loan Audits – Get The Facts on Your Loan and Protect Your Rights!

This is the last days of our “End of Summer Sale.” Until September 15th Save $100 Off Your Audits!

The Federal Deposit Insurance Corp. provides loss-sharing protection to banks and other acquirers of failed depositories so they will acquire and manage troubled assets. These acquirers also agree to follow a FDIC loan modification program for struggling borrowers.

Now the FDIC wants homeowners who lose their job to get immediate relief. “This is simply good business since foreclosure rarely benefits lenders and would cost the FDIC more money, not less,” said FDIC Chairman Sheila Bair.

“With more Americans suffering through unemployment or cuts in the paychecks, we believe it is crucial to offer a helping hand to avoid unnecessary and costly foreclosures,” Bair said.

FDIC is “encouraging” its loss-sharing partners to temporarily reduce mortgage payments for at least six months when borrowers lose their jobs.

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Mortgage Loan Compliance®

www.ml-compliance.com

Commercial and Residential Forensic Loan Audits – Get The Facts on Your Loan and Protect Your Rights!

We have extended our End of Summer Sale until September 15, Don’t Miss Your Chance to Save $100 Off Your Audits!

According to John J. Tuchi, interim U.S. attorney for the District of Arizona, participants in a real estate scheme recruited unqualified straw borrowers, submitted fraudulent loan applications on their behalf, obtained mortgage loans in excess of the selling price and then took the excess amount of the loans out through escrow.

Mario Bernadel, a real estate investor from Phoenix, has been convicted of running a mortgage fraud scheme involving at least 32 residential properties in the greater Phoenix area.  Bernadel is the 20th defendant to date who has been convicted. U.S. District Judge Stephen M. McNamee set sentencing for late November.

Bernadel recruited and trained mortgage brokers, straw buyers and an escrow officer in the scheme and, following the funding of the loans, received cash back.  Seven other co-conspirators were also charged and have pleaded guilty and await sentencing.

The homes purchased through the scheme have been foreclosed or sold at a loss. The scheme resulted in $20 million in loans obtained by fraud and a loss of more than $2 million.

Bernadel’s conviction is part of “Operation Cash Back,” in which 40 defendants were indicted and arrested.

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Mortgage Loan Compliance®

www.ml-compliance.com

Commercial and Residential Forensic Audits, Demand Letters, and Rapid Reports™ – Get The Facts on Your Loan and Protect Your Rights!

We have extended our End of Summer Sale until September 15, Don’t Miss Your Chance to Save $100 Off Your Audits!

Finn Casperson, former Chief Executive Officer of Beneficial Finance, has been found dead in what authorities say is an apparent suicide.

Beneficial Finance was once one of the largest players in consumer home equity-based lending. When Finn Casperson became CEO of the firm he succeeded his father.

Casperson served as CEO from 1976 to 1998, during a time when the firm specialized in low loan-to-value ratio second liens backed by homes.

Later in 1998 Beneficial was sold to Household International for $9 billion. HSBC Holdings eventually bought Household for $14 billion. The British bank later booked huge losses on Household’s subprime business.

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Mortgage Loan Compliance®

www.ml-compliance.com

Commercial and Residential Forensic Audits, Demand Letters, and Rapid Reports™ – Get The Facts on Your Loan and Protect Your Rights!

We have extended our End of Summer Sale Until September 15, Don’t Miss Your Chance to Save $100 Off Your Audits!