Local Bank is the Latest Sub-Prime Lending Casualty
First National Bank, the largest AZ bank that specialized in sub-prime lending, was shut down by federal regulators today, the latest casualty in the mortgage meltdown mess. Mutual of Omaha Bank, a subsidiary of Mutual of Omaha, has stepped up to acquire the assets and holdings of FNB so existing customers should be minimally affected.
The current housing slowdown affects all homeowners, from Scottsdale luxury real estate to Phoenix condos and all points in between. In fact, the breadth and depth of the crisis becomes clear when you consider that FNB was the first AZ bank to fold since 2002, and only the 2nd in the last 16 years!
More are sure to follow…