Can Banks Run On Altruistic Models And Is It Fair To Let Small Banks Collapse While Saving The Mega

The private bank, Park National Bank in Maywood, Chicago, previously owned by Michael Kelley was very popular with the people for its focus on community development. However it has now failed and taken over by the fifth-biggest bank in America – US Bank. The FDIC said that it has cost the insurance fund $2.5 billion.

This poses questions arising out of the debacle. One is the viability of running banks on the philanthropic model of Kelley and secondly the fairness of Washington in closing small banks and saving the megabanks.

Under the weight of risky mortgages and questionable underwriting, some of the big banks nearly fell flat. One of the big problems of Kelley’s organization was that it had invested about $900 million in some of the sure stocks – those of Fannie Mae and Freddie Mac. The regulators of the government gave all the encouragement they could to make even the banks park their investments here. But Fannie and Freddie melted down with the fire in the mortgage industry. Two years previous the feds seized them but not without leaving behind gaping holes in the banks of Kelly.

There were other problems also. For years he had been lifting up other banks when others were treating them as untouchables. He allowed his umbrella organization, FBOP, to stretch their portfolio on loans by 35% in one year from 2007 to 2008. When the property market crumbled and the credit market froze the loan portfolio too of FBOP began to deteriorate – especially as regards commercial real estate.

At the Congressional panel hearing, Kelley said last January that he thought his problems had been solved when the government launched the TARP measure in 2008 October. His regulators pressed upon him to promptly apply for TARP benefits. Verbal assurances were given to him about his getting easy approval. But in the first round, only the public banks benefited and not the private ones. Kelley received no assistance. His second application for getting help from TARP also was in vain as the regulators kept switching their requirements.

Later what happened was pure drama that gained much attention. Timothy Geithner the Treasury Secretary awarded a subsidiary of Park National $50 million as tax credits on 30th October 2008 in the morning. It was for helping in financing schools, development of retail outlets, and community center on the south side of Chicago. But later in the afternoon, the regulators of the fed closed the banks of Kelly!

New York Home Mortgage Types Offered By The Fha

Buying a home is like fulfilling one of the biggest dreams in life. In New York, home mortgage loans are offered in various forms to the buyers. Having sufficient knowledge of each type can save a lot of the buyer’s hard-earned money. If a person is not eligible for obtaining a conventional loan, he can also opt to take out an FHA mortgage. Recently, the FHA has introduced some new rules that have been applied in the year 2010.

There has been a substantial increase in the upfront insurance premium for FHA loans. The new premium percentage has increased from 1.75% to 2.25%. For every $100,000, the borrower needs to pay an additional fee of $500 towards closing costs or he can pay a total of $2,250. The amount will become double if the loan amount taken is $200,000.

In New York, home mortgage loans are not directly offered by the Federal Housing Authority. The FHA gives a guarantee of repayment to the lenders, in case the buyer fails to repay the loan. Some of the types of FHA loans are as follows:

* General FHA loans: A person can obtain this type if he has a low credit score and cannot afford to pay 20% down payment. The loan term ranges from 10-30 years. The loan can be either a fixed rate or an adjustable-rate one.

* FHA HUD loans: Those who want to buy an FHA foreclosure home can obtain this loan. This program offers a minimum down payment, which can be as low as $100. The buyer also gets a small amount of repair escrow account, if the home needs repair and also closing cost assistance up to $2,500. The loan term ranges from 10-30 years. The mortgage rate is fixed.

* VA loans: This loan is offered to military veterans. No down payment is needed and the interest rate is 1% less than the current market rate. The loan term ranges from 10-30 years. The buyer needs to pay a 1% funding fee during the closing of the loan process. The property and insurance taxes are factored into an escrow account.

* SPARC: It is a low-interest loan provided by the Sponsoring Partnership and Revitalizing Communities, through the local government, housing authorities, non-profit organizations, and so on. These organizations merge different types of loans offered by the local, state, and federal government and offer them to the borrowers.

If you want to avail of FHA loans, log onto This New York home mortgage company specializes in real estate financing related services. After evaluating your financial conditions, the loan consultants will help you choose the best mortgage type, to suit your repayment affordability the best.

Alpharetta Homes For Sale

Alpharetta a city in north Fulton County, is home to around 49000 people according to a survey done in 2008. This city stretches from North Georgia Mountains to the Chattahoochee River along a Cherokee Indian trail. The name Alpharetta has its origin from two Greek words Alpha meaning first and Retta meaning Town.

The Atlanta Real Estate market of the USA has its eye on this city as it has given high returns on property investments in the last decade. The price of Alpharetta homes faced a steady growth over a period of time and hence most of the experienced real estate brokers opine that Alpharetta real estate is the best place to invest. Surveys show that from a broader perspective even if the price of property has declined, an investor who purchased a home eight years ago had a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent in property value all over the USA. Hence we can say that from a long-term point of view Alpharetta’s real estate can be a definitely good value for money.

We provide exhaustive information about Alpharetta Homes for Sale on our website. We help you in not just buying a house but to build your dream home. Alpharetta luxury homes are conveniently located in the Atlanta metropolitan area. Alpharetta city is famous both for its cultural heritage and flamboyant lifestyle.

The Alpharetta luxury homes embody all the modern amenities like swimming pools; children’s playgrounds, tennis courts, etc which suits the need for single buyers or family men. There are ample opportunities for recreation, as one can enjoy sports activities at Wills Park or simply enjoy a world-class shopping experience at North Point Mall.

Alpharetta city also boasts about a sound education system in place which includes Elementary Schools Middle Schools, High Schools, and also higher education available at the A satellite campus of Georgia State University. Alpharetta city also offers ample employment opportunities in the software and technology field. Moreover, the traffic system in Alpharetta is constantly being improvised so that dwellers of Alpharetta Homes can also travel to adjoining areas on a day to day basis for work at minimum time.

We provide you a wide variety of Alpharetta homes for sale to choose from like, Alpharetta townhomes, Alpharetta condos, Alpharetta foreclosures. All you have to do is just click on the option that suits your requirement for a dream home the best. We would assist you in every step of buying or selling an Alpharetta luxury Home as if the property was our own. We take pride in our services on Alpharetta Real estate as we have real estate professionals who manage the entire show. We also believe in assisting our clients as and when required even after the process of buying or selling an Alpharetta Home has already been completed because we believe in long term relationship with our clients.

We have the recent most listings of Atlanta Luxury Homes on our website AtlantaRegionMLS. You have the unique option of becoming a VIP buyer. Once you become a VIP buyer we will keep you updated about all new listings on our site which suits your requirement. So here’s you chance to save time on searching an Alpharetta home on our site, just simply fill up a form with us and we will do the search for you and send you an automatic update on new listings.

If you have already decided upon buying your luxury home at the most sought-after locality in Atlanta, Alpharetta then gives us a chance to serve you.