On Friday the California Department of Financial Institutions shut down Tamalpais Bank and named the Federal Deposit Insurance Corporation (FDIC) as Receiver. As a plugged-in tipster notes (and correctly predicted): “Collateral damage from the Lembi implosion.”
And apparently Union Bank has acquired the banks assets.
Flipping A Few Lembi Properties Through Foreclosure [SocketSite]
The Story (And Faces) Behind The Rise And Fall Of The Lembis [SocketSite]
Mitsubishi UFJ Financial’s Union Bank Buys Failed US Lender [Wall Street Journal]

Comments from Plugged-In Readers

  1. Posted by no brainer

    This was a no brainer. As a mortgage broker I did a loan for one of my clients back in 06-ish that no one else would touch, but tampalpius did no. They actually underwrote the small apartment complex where the rent could only cover 85% of the loan. Where does the other 15% come from? from the income of the new owner.
    No one did this. Usually banks needed about 125% of the debt to be covered. in todays market anywhere from 135-175% needs to be covered.

  2. Posted by 45yo hipster

    Holly shit balls! I wonder if bank of marin is in danger, but from what I know I think the answer is no.

  3. Posted by Sam Foster

    Part Lembis, part moron bank management doing stupid stuff.

Comments are closed.

Recent Articles