First National Bank of Arizona Fails
Author: Rob K. Blake | Date: July 26, 2008 | Filed In: Mortgage News
First National Bank of Arizona which merged into First National Bank of Nevada, Reno and First Heritage Bank, N.A., Newport Beach California failed Friday. The Comptroller of the Currency and the FDIC were named the receiver. The FDIC arranged a agreement with Mutual of Omaha Bank to purchase the assets and handle the deposits of the failed banks.
The depositors according to an FDIC press release can simply interact normally to withdraw or deposit money. Writing checks and using ATM cards as usual will work, it’s just that Mutual of Omaha Bank is handling everything now. All loans should still be paid on time as normal as well.
As a side note, I remember First National Bank of Arizona at the many mortgage lender fairs Terri and I attended here in Denver over the years. Even though we never actually brokered a loan through them, they were known as a very aggressive “No Doc” wholesale lender. Remember the “No Doc” loan program was infamous for not requiring verification of income or assets to acquire a mortgage.
This is another institution similar to IndyMac that ended up primarily a national subprime or non-traditional wholesale lender more so than a depositor bank regardless of if they started out that way or not.
Good Luck!
Author: Rob K. Blake
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