Send Article via Email

Every Friday, in just about every bank failure press release, the FDIC mentions a loss share agreement with the acquiring bank. As an example, in the press release regarding Mutual Bank of Harvey, Illinois on July 31st: As of July 16, 2009, Mutual Bank had total assets of $1.6 billion and total deposits of approximately $1.6 billion. In addition to assuming all of the deposits of the failed bank, United Central Bank agreed to purchase essentially all of the assets. The FDIC and United Central Bank entered into a loss-share transaction on approximately $1.3 billion of Mutual Bank's assets. emphasis added For those interested in every detail, here are the Single Family Loss Share Agreement (page 54) and Commercial Loss Share Agreement {page 89) between the FDIC and United Central Bank (the

More from MND:

• MBS Commentary: MBS RECAP: Uneventful Session, MARKETS CLOSED MONDAY
• Mortgage Rate Watch: Mortgage Rates Reverse Course Every Day This Week, But Stay Near Lows
• MBS Commentary: MBS MID-DAY: Dying Down Ahead Of Long Weekend
• MND NewsWire: Federal Reserve Releases Action Plans for Two Loan Servicers
• MND NewsWire: Fannie and Freddie: "Where the Money Went."

If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.