United Commercial Bank with offices throughout California was taken over by the FDIC on Friday and is now a part of East West Bank. They had a lot of loans tied to real estate within their portfolio and it will be interesting to see how quickly the FDIC will liquidate some of those. I have heard the FDIC is moving faster to liquidate assets as they have ramped up staff but still not to where they need to be.
http://www.latimes.com/business/la-fi-bank-failure7-2009nov07,0,2745693.story
This bank also received almost $299 M in Tarp funds, which are now with zero
Below is an interesting story from the OC Register that I think is playing out across the US. 7% of all mortgage on homes are 90 days delinquent or more in Orange County (which is scary) but lately few of those homes have turned into REO product due to short sales, homes being sold at auctions, and the biggest reason loan modifications.
I truly believe there is more foreclosure waves coming on the residential side of the business and the time to buy will be this time next year. The government can not force people to pay their mortgages or maybe they can find a way too
http://mortgage.freedomblogging.com/2009/11/07/foreclosed-homes-decline-to-26th-month-low/20885/
Finally, I loved this line for how bad hotels are performing and what happens with the Extend and Pretend model
Van also warned there won’t be enough capital to rescue the hundreds of billions of dollars of CMBS loans maturing during the next couple of years—and that is being exacerbated by the current “extend and pretend” phenomenon in which banks are extending existing loans because there’s nothing else they can do with them.
“With the maturity wall out there and the ultimate increase in LIBOR, the extend-and-pretend thing is like putting your homework off until 9 p.m. Sunday night,” Van said. “Well, 9 p.m. Sunday night is coming.”
http://www.hotelnewsnow.com/Articles.aspx?ArticleId=2164&ArticleType=35&PageType=News
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