Saturday, May 1, 2010
Minnwest Bank is Being Watched...
Post and photo by the Hawthorne Hawkman
Two mortgage-geeky things happened today. First, I received the postcard above from John as he was on the road. The caption reads "Tennessee Mortgage Lifters," and I for one don't get the joke or point. But it's the first time I've seen mortgages referenced on a postcard.
John noticed the same thing and had to send this one my way. He also pointed out, "Don't get used to it, I save my postcards for the chicks."
The other mortgage item relates to Minnwest Bank, the lender behind most of Paul Koenig's (pronounced Kay-neg) Pamiko loans. It turns out that Minnwest...
...has been cited by the FDIC for "unsafe or unsound banking practices." The link to the FDIC's order can be found here. (WARNING: DO NOT COMBINE THIS DOCUMENT WITH ALCOHOL, AMBIEN, OR ANY OTHER DEPRESSANT. DO NOT OPERATE HEAVY MACHINERY WHILE READING THIS DOCUMENT. DO NOT ATTEMPT TO OPERATE A MOVING VEHICLE WITHIN FOUR HOURS OF READING THIS DOCUMENT. IF YOU ACTUALLY FIND THIS DOCUMENT INTERESTING, SEE A DOCTOR IMMEDIATELY. YOU NEED HELP.)
Minnwest has been ordered, among other things, to analyze the value of its collateral (such as foreclosed Pamiko properties) and to not extend further credit to "adversely classified borrowers." One thing that is missing is any way to force Minnwest to be part of cleaning up the colossal damages done to NoMi as a result of their loans to Koenig. Admittedly, I would not expect the FDIC to impose such a burden. But our State Commerce Department should press for this.
For the sake of Minnwest employees and shareholders, I do hope they emerge from this as a solvent and profitable financial institution. But the heat on Koenig should only intensify.