FDIC receives offers for mortgage lender
Market Street is tied to NetBank's collapse.
By HELEN HUNTLEY, Times Staff Writer
Published October 2, 2007
Federal regulators who took control of Market Street Mortgage on Friday in the collapse of NetBank hope to have a deal for the sale of the Clearwater mortgage company by the end of the week.
"We have a couple of motivated buyers," the FDIC's Dan Bell told Market Street employees in a Monday morning e-mail announcing that he is the company's new chief executive officer. Market Street is a subsidiary of NetBank, which makes it part of the receivership controlled by the Federal Deposit Insurance Corp.
Former CEO Randy Johnson was removed from his job and is now acting as a consultant in negotiations for a sale. Two other top executives, Steve Joyce and Steve Chiou, also have lost their titles and their board positions, but are still working with the company.
Market Street, which made $3.2-billion in loans last year, has 590 employees in 16 states and is one of the largest originators of mortgage loans based in the Tampa Bay area. Bell said the FDIC has arranged for C.D. Mitchell & Co. to provide payroll, health insurance and other benefits to employees.
Market Street is no longer accepting loan applications or funding any new loans that were not approved before the takeover. Market Street customers whose loans have not yet been approved will need to look elsewhere.
NetBank was shut down by the government's Office of Thrift Supervision on Friday because of bad loans and poor business practices. It was the largest savings and loan failure since the crisis more than 14 years ago.
ING Bank took over the insured deposits. Customers with $109-million in deposits above the FDIC insurance limits will be creditors of the receivership.
Helen Huntley can be reached at firstname.lastname@example.org or 727 893-8230
[Last modified October 1, 2007, 23:44:05]
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