April 19, 2010
Tamalpais Bank Falls (Thanks To The Lembis?)
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]
First Published: April 19, 2010 6:15 AM
Comments from "Plugged In" Readers
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.
Posted by: no brainer at April 19, 2010 4:37 PM
Holly shit balls! I wonder if bank of marin is in danger, but from what I know I think the answer is no.
Posted by: 45yo hipster at April 19, 2010 5:16 PM
Part Lembis, part moron bank management doing stupid stuff.
Posted by: Sam Foster at April 19, 2010 7:05 PM