Acquisition, Collapse & Regulatory Actions
A California credit union collapsed and an Ohio bank expanded its mortgage operations with the acquisition of another bank. Dozens of other financial institutions are dealing with a host of legal and regulatory actions, while a hard-money wholesale lender is streamlining operations with the help of a third party. Three real estate invstement trusts also made announcements.
Titan Lenders Corp. will provide back office fulfillment services for LJL Funding LLC, a press release yesterday said. Titan specializes in closing, funding, and post closing services, while LJL funds hard-money loans for mortgage brokers.
Franklin Bank Corp. said Monday that it appointed Andy Black to serve as interim chief executive officer, replacing interim CEO Lewis S. Ranieri. Ranieri stepped in during May when founder and CEO Anthony J. Nocella was relieved of the post following the disclosure of faulty accounting in the bank's lending business.
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Acquisition Done, Merger On
A small mortgage company has been acquired by a big bank, while two small banks have agreed to merge. Other corporate activity includes a real estate investment trust struggling to generate earnings and a New York-based lender that said it has been approved to issue securities backed by loans insured by the Federal Housing Administration.
Banks In Play
As the bankruptcy of a bank-holding company enables the sale of its subsidiary, another bank is being acquired by a financial behemoth. A third bank is hoping a successful public offering will boost its capital. Meanwhile, a real estate investment trust has unloaded all of its repurchase agreement financing with non-related third parties.
1 Merging, 1 Unloading Assets, 1 May Fold
The current economic environment continues to take a toll on financial firms, with some raising capital to offset losses, others merging with healthier organizations and a real estate investment trust warning that it might not survive.
Corporate Ladders & Slides
IndyMac Bancorp Inc. is facing its third investor lawsuit in one week, while several other banks are facing orders from a federal banking regulator. Other recent corporate activity includes a triggering event for a real estate investment trust.
Mergers On, Off & Pending
Shareholders of a troubled real estate investment trust have authorized the issuance of 3.5 billion additional shares, while shareholders of the nation's biggest mortgage lender are being advised to approve the acquisition of the company. Other recent corporate activity in the mortgage sector included a government-sponsored enterprise downgrade, a new REIT president and a delay in a series of planned mortgage acquisitions.
Massive Loss at Thornburg
Thornburg Mortgage Inc. reported a massive quarterly loss and disclosed that it temporarily halted new loan originations recently. Shareholder equity has been wiped out.
Biggest Gets Bigger, Others Struggle
Federal regulators recently announced a number of actions, including approval of a merger that will create a financial institution with more deposits and residential originations than any other U.S. firm. Meanwhile, a real estate investment trust has moved from trading on the OTC Bulletin Board to the NASDAQ.
3 Acquired, 1 Collapses
Three financial firms were acquired during the past week, while regulators shut down a Minnesota bank. Other recent mortgage-related corporate activity included the appointment of a former regulator to a senior executive position at a reverse lender, another investor class action and a dividend declaration by a subprime real estate investment trust.
Investor Lawsuits Filed, Dismissed
Two mortgage companies announced planned public offerings. And as an investor class-action lawsuit was dismissed against a real estate investment trust, another investor lawsuit was filed against a different company. Meanwhile, an acquisition of The Bear Stearns Companies Inc. that was brokered by the Fed in emergency negotiations was approved by the beleaguered firm's shareholders.
