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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ldo79 who wrote (88421)	11/4/2007 3:02:33 PM
From: John Vosilla	Respond to of 110194

It goes to show the housing problems run much deeper than just overvaluation and prices running ahead of incomes or poor local economies. In the big cities in TX you have none of that just overbuilding staying ahead of 500-600k increases in population year over year and lax lending to folks who don't even have discipline to afford monthly payments on their homes at 3 times income..

To: ldo79 who wrote (88421)	11/4/2007 7:10:52 PM
From: Nikole Wollerstein	Respond to of 110194

The weight of defaults on real estate loans has forced the Bay Area-based Cal State 9 Credit Union into federal conservatorship. The state Department of Financial Institutions announced late Friday that it was putting the National Credit Union Administration - the federal agency that regulates and insures credit agencies - in charge of Cal State 9 operations. Member deposits are federally insured up to $100,000; IRA and KEOGH retirement accounts are insured up to $250,000. The institution will remain "open for business as usual," according to a joint statement issued Friday by Cal State 9 and federal officials. Judith Hurst, Cal State 9's interim CEO who came aboard Friday, said in a letter to members posted on the credit union's web site, that the No. 1 priority during this period is to protect member assets and restore financial stability. As part of the recovery effort, the conservator will look into merging Cal State 9 with another financial institution or selling it, officials said. The credit union has five branches in San Francisco, Berkeley, Oakland, Hayward and Pleasant Hill. Its headquarters is in Concord. The Cal State 9 Credit Union, which has been in operation for nearly 60 years, has more than 29,000 members and nearly $388 million in assets, said Carol Chesbrough, California's interim commissioner of financial institutions. "The credit union, however, had impaired capital and had become insolvent," Chesbrough said. The credit union reported $54.5 million in loan and lease losses in its September quarterly report on file with the state; in the previous quarter the reported losses amounted to $17 million. The takeover signals yet another misfortune in the unfolding mortgage crisis in which homeowners are defaulting on their loans and losing their properties. The bulk of Cal State 9's loans are for real estate transactions. The state's action "is related to the credit union's defaults on mortgages," California Department of Financial Institutions spokeswoman Alana Golden said today. Cal State 9 started as a credit union for University of California employees but has since expanded its membership pool to residents and employees in San Francisco, Alameda, Santa Clara, Contra Costa and Sacramento counties.