Kara Homes Inc., a New Jersey-based homebuilder, filed for bankruptcy protection Oct. 6, owing 12 bank lenders at least $244 million.According to a just-released report issued by Sandler O'Neill, "the magnitude of the exposure that some banks had was not known (and was frankly a bit surprising to us)." Sandler added that, "At this juncture, it is difficult to ascertain how, or if, this debt is collateralized." Among the banks with the largest claims are ING Direct, which is owed $77 million, Amboy National Bank ($58 million), and National City Corp. ($48 million). ING and National City are also large mortgage lenders. The housing market has been weakening all year, and there is little chance of an upturn until late next year, economists believe. Kara filed for Chapter 11 bankruptcy protection in federal court in New Jersey.
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Ohio-based Liberty Home Mortgage joins several companies who started using a more modernized FICO credit score for nonconforming mortgage originations recently.
10h ago -
The CFPB has dissolved the Office of Supervision, Enforcement and Fair Lending and eliminated the job of associate director in a move that impacts how it designates nonbanks for supervision.
11h ago -
The plan that the Federal Housing Finance Agency floated calls for Freddie Mac to actively invest in some new closed-end seconds as cash-out refinancing subsides.
April 17 -
The push comes amid what one expert highlighted as lax funding efforts for two Department of Housing and Urban Development grant programs.
April 17 -
Conventional lending drove volumes higher, particularly in the purchase market, the Mortgage Bankers Association said.
April 17 -
Net charge-offs at the Charlotte, North Carolina-based bank increased by more than 80% in the first quarter compared with a year earlier. BofA executives say that the rising losses were in line with the bank's risk appetite.
April 16