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Anchor BanCorp Wisconsin Inc. Message Board

  • johnff2004 johnff2004 Aug 30, 2009 8:08 AM Flag

    What's happening at Anchor?

    My father-in-law has a $.75 million loan on some lots he developed a couple of years ago. He just received a letter from Anchor saying they were going to forclouse on them even though he is current with his payments. He called to talked to his loan officer and he is no longer there. He was told about ten loan officers were let go for making bad loans. Doesn't the BOD or Senior Management have to approve any and all loans? Are the loan officers taking the rap for poor management decissions? Anchor is in serious trouble!

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    • I think you are full of crappola......they would not foreclose on a loan that is current - I do think someone is full of crappola.

      • 1 Reply to booleansearcher
      • Clearly you don't have the patience to realize that this person's relative's loan had extended past the maturity period, but the person was making monthly payments.

        Every bank in this country is playing the re-margining game on commercial loans. Two years ago, Anchor would have probably granted an extension. Today, under the burden of a cease and desist order, constraints put on it from the US Bank agreement, and TARP it probably has little flexibility to do anything but foreclose if tangible collateral is available. That is not a sign of a healthy bank. I guess we'll wait and see what happens in the months after 9/30. Of the banks that the FDIC has taken over, the cease and desist orders preceded takeovers. If Anchor can pull a rabbit trick and pay down the US bank loan, I commend them for escaping paying private equity rates for their borrowings. Not much money to be made when the Bank's effective interest rates on borrowings is almost double what it can make in income; but I suppose kicking-the-can-down-the-road is the only way to go in an illiquid market. Think about it, a purported $5BN dollar bank does not have liquidity of $116M and has a market cap of $28.5M. It doesn't take financial acumen to figure out there is a serious problem.

        Badger Bob stated it well:

        "Banks are putting loans that are still making monthly payments but have matured or gone beyond their stated maturity date and putting them in default (which they can as a matured loan can be called for full repayment). Not sure why a bank would deploy that strategy unless they think the borrower has plenty of other resources to repay the debt. In many cases, the banks are just trying to re-margin their loan by getting or forcing the borrower to put up additional collateral or pay down the loan to a new LTV based on a new appraisal (which in today's market will always be lower it seems). You need to advise your father-in-law to seek good representation NOW. I have heard that ABCW will deal in certain situations - allow a short sale/refinance in order to move it out of the bank, etc. Not sure why - but speculate it has to do with their stated intent to downsize their CRE and land loan portfolio. Get a good attorney and stall - you may be dealing with the FDIC or another bank anyway after 9-30-09 at which case you can probably get a better deal than you can with the people currently running that place. Best of luck."

    • young_grasshopper6_14_89 young_grasshopper6_14_89 Sep 9, 2009 12:10 PM Flag

      wow feel free to speculate all you want, loan officers come and go from all banks all the time, me and my entire family have house, auto and boat loans through anchor bank. savings and checking to we have never had an issue. it's true they got into some bad loans in the past but that was years ago. perhaps you father in law's agent was let go during that period of bad loans... but i dont know, all i can say is our local branch is allways buesy.

    • Sorry to hear that you father-in-law has gotten caught in the vortex of banking. Happening all over the industry, not just at ABCW. Banks are putting loans that are still making monthly payments but have matured or gone beyond their stated maturity date and putting them in default (which they can as a matured loan can be called for full repayment). Not sure why a bank would deploy that strategy unless they think the borrower has plenty of other resources to repay the debt. In many cases, the banks are just trying to re-margin their loan by getting or forcing the borrower to put up additional collateral or pay down the loan to a new LTV based on a new appraisal (which in today's market will always be lower it seems). You need to advise your father-in-law to seek good representation NOW. I have heard that ABCW will deal in certain situations - allow a short sale/refinance in order to move it out of the bank, etc. Not sure why - but speculate it has to do with their stated intent to downsize their CRE and land loan portfolio. Get a good attorney and stall - you may be dealing with the FDIC or another bank anyway after 9-30-09 at which case you can probably get a better deal than you can with the people currently running that place. Best of luck.

 

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