Kappa Alpha Psi FCU, Addison, Texas

Kappa Alpha Psi FCU, Addison, Texas, became unlucky number 13 in 2010 as it was shuttered by NCUA today.

Saying that it is “minimally capitalized and there are no reasonable prospects for the credit union to achieve adequate capitalization,” the NCUA today announced it was liquidating Kappa Alpha Psi FCU.
The Addison, Texas-based credit union, which had $779,854 in assets as of March 31, saw its loan income decline by 49.1% in the first quarter of 2010, the most recent data available. In the fourth quarter of last year the income fell 65%.

Its net worth ratio was 1.95% as of March 31 and 0.58% as of last Dec. 31.

As of March 31, its delinquent loan ratio was 22.42%, up from 11.77% as of last December 31.

Its return on average assets was -0.65% on March 31, compared with -0.61% as of December 31.
The credit union signed a letter of understanding with the NCUA last year and agreed to improve what the agency characterized as poor recordkeeping and unsafe loan practices.

Kappa Alpha Psi FCU was a virtual credit union with no full-time employees and was a low income credit union. It was founded in 2004 and had 1,341 members.

Be sure to visit the NCUA webpage for more information on First Delta Federal Credit Union.

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Family First Federal Credit Union of Orem, Utah

Family First Federal Credit Union of Orem, Utah, was closed by NCUA, just another casualty  crisis.

NCUA assumed control of operations at Family First Federal Credit Union of Orem, Utah. NCUA’s goal is to continue credit union service to the members and ensure safe and sound credit union operations.

Service to Family First Federal Credit Union’s 19,476 members will continue uninterrupted. Members can conduct normal financial transactions – deposit and access funds, make loan payments and use share drafts. Family First Federal Credit Union is a full service credit union, with assets of $139.5 million, that provides financial service to people residing in Utah County, Utah.

Family First Federal Credit Union was placed into conservatorship due to declining financial condition. The credit union is not adequately capitalized under standards set forth in the Federal Credit Act, and has earnings insufficient to enable it to continue under present management. The credit union’s problems stemmed from problems in its loan portfolio.

The decision to conserve a credit union enables the institution to continue normal operations with expert management in place correcting previous service and operational weaknesses.

Member deposits are safe. Their accounts are insured up to at least $250,000 by the National Credit Union Share Insurance Fund (NCUSIF), a federal fund managed by NCUA and backed by the full faith and credit of the U.S. Government.

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Certified Federal Credit Union, Commerce , California

Certified Federal Credit Union, Commerce , California, became the 12th federally insured credit union in the nation to be closed in 2010, when it was placed placed into conservatorship by federal regulators. This isn’t a failure, but these conservatorships often lead to liquidations.

Certified Federal Credit Union in the City of Commerce was seized by federal regulators Saturday because of losses suffered during the real estate and housing downturns, according to the National Credit Union Administration.

Vons Employees Federal Credit Union, based in El Monte, immediately assumed the deposits and loans of Certified and took over its operations, said John J. McKechnie III, a spokesman for the national agency.

Certified, which had only one office, served 8,500 members. The location opened Monday as usual. The member accounts were federally insured for up to $250,000 by the National Credit Union Share Insurance Fund.

Be sure to visit the NCUA webpage for more information on First Delta Federal Credit Union.

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LibertyBank, Eugene, Oregon

LibertyBank, Eugene, Oregon, becomes the 108th FDIC causality of 2010 at an estimated cost to the Deposit Insurance Fund (DIF) of $115.3 million.

LibertyBank, Eugene, Oregon, was closed today by the Oregon Division of Finance and Corporate Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Home Federal Bank, Nampa, Idaho, to assume all of the deposits of LibertyBank.

The 15 branches of LibertyBank will reopen on Monday as branches of Home Federal Bank. Depositors of LibertyBank will automatically become depositors of Home Federal Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of LibertyBank should continue to use their existing branch until they receive notice from Home Federal Bank that it has completed systems changes to allow other Home Federal Bank branches to process their accounts as well.

This evening and over the weekend, depositors of LibertyBank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, LibertyBank had approximately $768.2 million in total assets and $718.5 million in total deposits. Home Federal Bank paid the FDIC a premium of 1.0 percent for the deposits of LibertyBank. In addition to assuming all of the deposits of the failed bank, Home Federal Bank agreed to purchase approximately $419.7 million of the failed bank’s assets.

The FDIC and Home Federal Bank entered into a loss-share transaction on $300.0 million of LibertyBank’s assets. Home Federal Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-523-8159. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT.

If you should have any further questions, please do not hesitate to visit the FDIC’s website for LibertyBank.

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The Cowlitz Bank, Longview, Washington

The Cowlitz Bank, Longview, Washington, becomes the 107th FDIC causality of 2010 at an estimated cost to the Deposit Insurance Fund (DIF) of $68.9 million.

The Cowlitz Bank, Longview, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank, Olympia, Washington, to assume all of the deposits of The Cowlitz Bank.

The nine branches of The Cowlitz Bank, including the two branches operating in Oregon, and three branches operating in Washington under the name Bay Bank, a division of The Cowlitz Bank, will reopen on Saturday during normal banking hours as branches of Heritage Bank. Depositors of The Cowlitz Bank will automatically become depositors of Heritage Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of The Cowlitz Bank should continue to use their existing branch until they receive notice from Heritage Bank that it has completed systems changes to allow other Heritage Bank branches to process their accounts as well.

This evening and over the weekend, depositors of The Cowlitz Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, The Cowlitz Bank had approximately $529.3 million in total assets and $513.9 million in total deposits. Heritage Bank paid the FDIC a premium of 1.0 percent for the deposits of The Cowlitz Bank. In addition to assuming all of the deposits of the failed bank, Heritage Bank agreed to purchase approximately $329.5 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.

The FDIC and Heritage Bank entered into a loss-share transaction on $160.9 million of The Cowlitz Bank’s assets. Heritage Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-528-6215. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT.

If you should have any further questions, please do not hesitate to visit the FDIC’s website for The Cowlitz Bank.

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Coastal Community Bank, Panama City Beach, Florida

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Bayside Savings Bank, Port Saint Joe, Florida

Bayside Savings Bank, Port Saint Joe, Florida, was one of two banks shut down by the FDIC to bring the total closed nation wide this year to 106. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $16.2 million for Bayside Savings Bank and $94.5 million

Bayside Savings Bank, Port Saint Joe, Florida and Coastal Community Bank, Panama City Beach, Florida, were closed today by federal and state banking agencies, which then appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for both institutions. To protect depositors, the FDIC entered into purchase and assumption agreements with Centennial Bank, Conway, Arkansas, to assume all the deposits and essentially all the assets of the two failed institutions.

Bayside Savings Bank was closed by the Office of Thrift Supervision, and Coastal Community Bank was closed by the Florida Office of Financial Regulation.

Collectively, the two failed institutions operated 13 branches, which will reopen as branches of Centennial Bank during normal business hours, including those offices with Saturday hours. Bayside Savings Bank has two branches, and Coastal Community Bank has eleven branches.

Depositors of Bayside Savings Bank and Coastal Community Bank will automatically become depositors of Centennial Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.

Customers of the two failed institutions should continue to use their former branches. Over the weekend, depositors can access their money by writing checks or using ATM or debit cards.

As of March 31, 2010, Bayside Savings Bank had total assets of $66.1 million and total deposits of $52.4 million. Coastal Community Bank had total assets of $372.9 million and total deposits of $363.2 million. Centennial Bank did not pay the FDIC a premium for the deposits of the failed banks. In addition to assuming all the deposits from the two Florida institutions, Centennial Bank will purchase virtually all their assets.

The FDIC and Centennial Bank entered into loss-share transactions on $48.3 million of Bayside Savings Bank’s assets and $302.8 million of Coastal Community Bank’s assets. Centennial Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transactions can call the FDIC toll free: for Bayside Savings Bank customers, 1-800-405-6318; and for Coastal Community Bank customers, 1-800-523-0640. The phone number for Bayside Savings will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 8:00 a.m. to 6:00 p.m., EDT; on Sunday from noon until 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT; and during the same hours, Central Daylight Time, for Coastal Community Bank customers.

If you should have any further questions, please do not hesitate to visit the FDIC’s website for Bayside Savings Bank.

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NorthWest Bank and Trust, Acworth, Georgia

NorthWest Bank and Trust, Acworth, Georgia, becomes number 104 on the FDIC’s hit list of 2010. The ailing bank was shuttered at an estimated cost to the Deposit Insurance Fund (DIF) of $37.1 million.

NorthWest Bank and Trust, Acworth, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with State Bank and Trust Company, Macon, Georgia, to assume all of the deposits of NorthWest Bank and Trust.

The two branches of NorthWest Bank and Trust will reopen on Saturday as branches of State Bank and Trust Company. Depositors of NorthWest Bank and Trust will automatically become depositors of State Bank and Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of NorthWest Bank and Trust should continue to use their existing branch until they receive notice from State Bank and Trust Company that it has completed systems changes to allow other State Bank and Trust Company branches to process their accounts as well.

This evening and over the weekend, depositors of NorthWest Bank and Trust can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, NorthWest Bank and Trust had approximately $167.7 million in total assets and $159.4 million in total deposits. State Bank and Trust Company did not pay the FDIC a premium for the deposits of NorthWest Bank and Trust. In addition to assuming all of the deposits of the failed bank, State Bank and Trust Company agreed to purchase essentially all of the failed bank’s assets.

The FDIC and State Bank and Trust Company entered into a loss-share transaction on $107.6 million of NorthWest Bank and Trust’s assets. State Bank and Trust Company will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-591-2916. The phone number will be operational this evening until 9:00 p.m., Eastern Daylight Time (EDT); on Saturday from 9:00 a.m. to 6:00 p.m., EDT; on Sunday from noon to 6:00 p.m., EDT; and thereafter from 8:00 a.m. to 8:00 p.m., EDT.

If you should have any further questions, please do not hesitate to visit the FDIC’s website for NorthWest Bank and Trust.

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Foreclosure Defense 101 Lesson 3: Don’t Argue the Legitimacy of Robo-Notaries

What are Robo-Notaries?  Robo-Notaries are usually local title agencies getting paid by Depositors and Trustees to act on their behalf.  Robo-Notaries came to the forefront of the foreclosure debate last year when Judge Schack questioned their legitimacy because the Notaries often signed for more than one Trustee or Depositor.   Since then, neophyte lawyers in foreclosure defense and mortgage activists have been trying to argue that this constitutes fraud.

Just this week, there was a class action suit filed in Federal Court in Miami claiming that the law firms and Trustees that utilize Robo-Notaries and MERS have committed massive fraud and racketeering against the people of Florida and the plaintiffs are seeking damages of $7.5 Billion.  This case will fall apart for several reasons but that’s an article I’m going working on for next week.

Here’s an example of how Robo-Notaries work and why they are perfectly legal.   Let’s say I’m out of town and I pay Cindi Dixon at Mela Capital (who also does audits) to sign up a client for MFI-Miami and she hires her friend to notarize the authorization to request information.  As the owner of MFI-Miami, I am aware of this and I have authorized Cindi to sign as “3^rd Assistant Vice President of MFI-Miami”.  This is not illegal nor does it constitute a violation of UCC.

If Cindi’s signature or the Notary’s signature does not match other documents they may have signed in the past and Cindi and/or the Notary attests in court to the fact that the signature on the document is indeed their signature then it is their signature.   At this point the Homeowner’s argument becomes a mute.

Usually what the attorney or the Pro Se litigant will do next is make the argument that this is a conflict of interest because Cindi also operates a forensic auditing company.  This is also a mute point because I am fully aware what she does and she is fully aware of what I do and I hired her anyway.  This bears no relevance on the homeowner’s case.

Where is the battle is won is by understanding and making a compelling argument about how the securitization process is flawed on the investor level not arguing the legitimacy of a Notary.

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2010 Bank Failures Exceed 100, $17.2B in FDIC Cost

The ink was barely dry on our last post with the full tally, when another 7 bit the dust, pushing the total expected FDIC expense almost another half billion, breaching the $17B level. Also, the individual failures have exceeded 100, now reaching 103.

The updated list is below:

Read the rest of this entry »

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