FDIC Approves the Assumption of the Insured Deposits of ANB Financial, National Association, Bentonville, Arkansas

The following is the actual press release in full from the FDIC regarding ANB Financial

FDIC: Press Releases - PR-33-2008 5/9/2008

FOR IMMEDIATE RELEASE May 9, 2008

ANB Financial, National Association, Bentonville, Arkansas, was closed today by the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect depositors, the FDIC’s Board of Directors approved the assumption of the insured deposits of ANB Financial by Pulaski Bank and Trust Company, Little Rock, Arkansas.

The failed bank’s nine offices will reopen Monday as branches of Pulaski Bank and Trust Company. Depositors of ANB Financial will automatically become depositors of the assuming bank.

As of January 31, 2008, ANB Financial had approximately $2.1 billion in assets and $1.8 billion in total deposits. Pulaski Bank and Trust Company will assume $212.9 million of the failed bank’s insured non-brokered deposits for a premium of 1.011% and will purchase $235.9 million of assets.

At the time of closing, ANB Financial had approximately $39.2 million in 647 deposit accounts that exceeded the federal deposit insurance limit. These customers will have immediate access to their insured deposits, and they will become creditors of the receivership for the amount of their uninsured funds.

ANB Financial also had approximately $1.6 billion in brokered deposits that are not part of today’s transaction. The FDIC will pay the brokers directly for the amount of their insured funds.

Over the weekend, all deposit customers can access their insured money by writing checks, or by using their debit or ATM cards. Checks drawn on the bank that did not clear before today will be honored up to the insured limit.

Customers with uninsured deposits, or who would like more information about the failure, can either call the FDIC toll-free at 1-877-367-2719 or visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/anb.html. The toll-free number will be operational until 9:00 p.m. (Central time) this evening. Beginning tomorrow and into the following week, the number will operate daily from 8:00 a.m. to 6:00 p.m., Central time.

In addition to assuming the failed bank’s insured deposits, Pulaski Bank and Trust Company will purchase approximately $235.9 million of the failed bank’s assets. The assets are comprised mainly of cash, cash equivalents and securities. The FDIC will retain the remaining assets for later disposition.

The transaction is the least costly resolution option, and the FDIC estimates that the cost to its Deposit Insurance Fund is approximately $214 million. ANB Financial is the third FDIC-insured institution to fail this year, and the first in Arkansas since Sinclair National Bank, Gravette, Arkansas, on September 7, 2001. Last year, three FDIC-insured institutions failed.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 8,534 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-562-2200). PR-33-2008

Federal regulators close Arkansas bank ANB Financial

The Associated Press: Federal regulators close Arkansas bank ANB Financial

Federal regulators close Arkansas bank ANB Financia

BENTONVILLE, Ark. (AP) — Federal regulators says they’ve closed ANB Financial National Association banks after discovering “unsafe and unsound” business practices there.

David Barr, a spokesman for the Federal Deposit Insurance Corp. says many customers served by the bank’s nine locations had accounts under $100,000, which will be fully insured by the government. Barr says customers can continue to write checks and draw money from ATMs through the weekend.

Barr says Pulaski Bank and Trust Co. agreed to assume control over ANB Financial’s bank locations, which will be open Monday.

As of Jan. 31, federal regulators say ANB Financial had about $2.1 billion in assets and $1.8 billion in total deposits.

It was the third closure this year of an FDIC-insured bank. Douglass National Bank, a Missouri bank with $58.5 million in assets, was shut in January; another Missouri institution with assets of $18.7 million, Hume Bank, was shut down in March.

Both were dwarfed in size of ANB Financial, where regulators found lax lending standards, mostly for construction and development loans for projects in Utah, Idaho and Wyoming, as well as Arkansas.

Observers have been watching for signs of bank distress resulting from the mortgage crisis. Profits at federally insured U.S. banks and thrifts plunged to a 16-year low in the fourth quarter as institutions set aside a record-high amount to cover losses from sour mortgages.

The FDIC is planning to beef up its staff, including temporarily hiring up to 25 retired FDIC employees who worked in the agency’s more than 200-person division that handles failed banks. They will handle an anticipated increase in bank failures.

Question: How will this affect the real estate market?

Well, I don’t know. What I can tell you is that ANB has TONS of “assets” (vacant properties) on the market right now and they were pricing them at “appraised value” which was generally high compared to what people would actually pay (IMHO). So, now, Pulaski is taking over bank operations. I’m anxious to see how fast they want to liquidate these “assets”. This maybe the perfect time to find a GREAT DEAL on a new construction, bank owned property! Shoot me an email if you are interested and when I find out more info, I’ll make sure that you are in the know. Potential buyers need good credit & a good down payment to pick up foreclosed homes. (Ray@theRayTeam.biz)

Rates on 30-year mortgages dip

Rates on 30-year mortgages dip

NEW YORK (CNNMoney.com) — Rates on 30-year mortgages edged lower this week but remained above 6% as signs of economic stability overshadowed continued weakness in the housing market.

Mortgage giant Freddie Mac reported Thursday that 30-year fixed-rate mortgages averaged 6.05% this week, down slightly from 6.06% last week.

“Despite a weak housing market, mortgage rates remained almost unchanged this week based on better-than-expected economic data releases that indicated the economy still has some staying power,” said Frank Nothaft, Freddie Mac vice president and chief economist.

House OKs housing rescue despite veto threat

House OKs housing rescue despite veto threat - msnbc.com

WASHINGTON - The House on Thursday passed a massive homeowner rescue plan to provide cheaper, government-backed mortgages to half a million debt-ridden borrowers and bolster an economy crippled by the housing crisis.

Defying veto threats from President Bush, the House approved the measure by a vote of 266-154, with 39 Republicans — mostly from areas suffering worst from housing woes — supporting it.

It would let the Federal Housing Administration take on up to $300 billion in new mortgages so that financially strapped borrowers facing foreclosure could refinance.

My heart goes out to those home owners who are struggling to pay their mortgage, but I’ve said it before and I’ll say it again… the best thing the government can do for the market is to STAY OUT of it!

Arkansas Homes Sales Down 23 Percent in March

ArkansasBusiness.com - Arkansas Homes Sales Down 23 Percent in March

Home sales in Arkansas were down about 23 percent in March, according to the latest report from the Arkansas Realtors Association.

Click here (PDF) to see the report.

Sales were down 32 percent in Washington County, 27 percent in Saline County and 16 percent in Pulaski County. For Arkansas’ top five markets, sales were down more than 21 percent.

BUSH ADMINISTRATION IMPLEMENTS A TARGETED, FINANCIALLY RESPONSIBLE PLAN TO HELP HOMEOWNERS

HUD News Release 08-05-06

BUSH ADMINISTRATION IMPLEMENTS A TARGETED, FINANCIALLY RESPONSIBLE PLAN TO HELP HOMEOWNERS
House Counters With Reckless Approach That Could Leave Taxpayers Footing The Bill

Risk Exposure

RESPONSIBLE: The Bush Administration’s plan will give the Federal Housing Administration (FHA) greater flexibility to insure mortgages and reduce monthly payments for borrowers with adjustable rate mortgages - without forcing taxpayers to foot the bill.  Expanding FHASecure, the government-backed mortgage refinancing product, creates a more viable option for American families who are in the right house but the wrong mortgage, and will help break the cycle of price depreciation and foreclosure.

RECKLESS AND COSTLY: The House plan is financially risky, rewards irresponsible behavior, and mandates a loosening of FHA’s underwriting standards, which would put taxpayers on the hook.  The FHA Housing Stabilization and Homeownership Retention Act, H.R. 5830, would permit FHA to provide up to $300 billion in new federal guarantees for risky mortgages.  According to the Congressional Budget Office, “the new loan guarantee program would cost $1.7 billion.”  Taxpayers - those homeowners not participating or receiving any help - would be forced to pay if the House expands FHA to cover extremely risky mortgages.  Currently, borrowers pay premiums for the help they get through FHA insurance, allowing FHA to operate without taxpayer subsidies.

HUD MAKES $1 BILLION IN GRANTS AVAILABLE THROUGH 35 PROGRAMS

HUD News Release 08-060

HUD MAKES $1 BILLION IN GRANTS AVAILABLE THROUGH 35 PROGRAMS
$1.5 billion in homeless grants will be available later this year

WASHINGTON - The U.S. Department of Housing and Urban Development today published its Fiscal Year 2008 “SuperNOFA,” an annual funding notice that makes available more than $1 billion in grants through 35 programs. HUD intends to offer an additional $1.5 billion in homeless grants later in the year through a new electronic application process that will significantly streamline funding of thousands of homeless assistance programs nationwide.

NWA Home Investor Trouble

ArkansasBusiness.com - NWA Home Investor Trouble

[Below is the Article in Full]

Another northwest Arkansas residential real estate investor and developer has filed for Chapter 7 bankruptcy.

Ira Zakariadze, a management professor at Missouri State University and who did business at Olika Investments Inc. in Springdale, listed $3.5 million in debt and $980,000 in assets. Olika started in August 2005.

Most of the debt, or $2.8 million, was tied to unsecured claims. Liberty Bank of Siloam Springs has the biggest unsecured claim at $1.3 million for the first mortgage on 10 acres in Fayetteville and a second mortgage on three duplexes owned by Olika Investments.

Zakariadze, who also works as a professor at the College of the Ozarks, reported receiving $147,740 in rents in 2006 and $125,900 in 2007. So far this year, he’s received $16,500 in rents.

Neither Zakariadze nor his attorney, John Lee of Siloam Springs, was available for comment.

Surprise: U.S. Unemployment Falls to 5 Percent April

ArkansasBusiness.com - Surprise: U.S. Unemployment Falls to 5 Percent April

The U.S. employment rate fell to 5 percent in April, with the economy shedding 20,000 jobs, much less than the 75,000 analysts had expected, according to a report from the U.S. Department of Labor’s Bureau of Labor Statistics.

Economists had been bracing for Friday’s report, predicting a greater loss in jobs that would take the unemployment rate to 5.2 percent.

The U.S. unemployment rate is down from March, when employers shed 80,000 jobs, leaving the rate at 5.2 percent. But it is up from 4.5 percent during April 2007. Click here (PDF) to see the complete report.

Five credits that will reduce your homeowners insurance

Five credits that will reduce your homeowners insurance - MarketWatch

CHICAGO (MarketWatch) — Homeowners often don’t take time to reassess their home-insurance coverage when it’s time to pay the premium. But with many Americans looking for ways to save a buck these days, examining that paperwork could pay off.
While raising the deductible is often an easy way to reduce premium costs, it isn’t the only way. Discounts in the form of credits are also available for many homeowners.
“People are really looking in every nook and cranny, if you will, for possible savings,” said Pete Spicer, vice president and new product manager for Warren, N.J.-based Chubb Group of Insurance Companies. “Credits can really add up and become substantial,” he added.