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
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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.
Holly shit balls! I wonder if bank of marin is in danger, but from what I know I think the answer is no.
Part Lembis, part moron bank management doing stupid stuff.