TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/81279
THE LATEST SECONDARY MARKET BB&T Buyout Gains Approval from the Fed, FDIC T The bank's maneuver to acquire BankAtlantic has been given a green light by government regulators. Corporation has approved BB&T Corporation's acquisition of BankAtlantic. BB&T's purchase of he board of governors of the Federal Reserve and the Federal Deposit Insurance African-Americans choosing to refinance used government- backed options 3.5 times more often than white homeowners. BankAtlantic, which is a wholly owned subsidiary of BankAtlantic Bancorp, also gained approval from the North Carolina Office of the Commissioner of Banks. The deal was considered complete as of July 31, and BankAtlantic's branches are expected to be converted to and rebranded as BB&T locations during the fourth quarter. In an official statement, BB&T noted that its decision to acquire BankAtlantic was "strategic" and designed to enhance the com- pany's presence "in the attractive Southeast Florida market." "We are pleased to welcome FHA, VA Loans Dominate in Communities of Color Industry and trade groups teamed up for the sixth edition of the "Paying More for the American Dream" series, which revealed strong community-based trends. our new clients and associ- ates to BB&T and are excited about boosting our presence in Southeast Florida," said Chairman and CEO Kelly S. King. "The acquisition of BankAtlantic is a compelling strategic expansion that meets all of BB&T's acquisition criteria. The bank's strong retail-oriented deposit-gathering reputation, as well as a focus on improving financial literacy in its communi- ties, and long-standing commit- ment to client service is a perfect fit with BB&T's culture." BB&T purchased around $3 billion in core deposits from BankAtlantic in the transac- tion, and the company is set to become the sixth-ranked bank in the Miami area by market share. A and Department of Veterans Affairs are "disproportionately prevalent" in neighborhoods of color. The study, which is the sixth edition of the "Paying More for the American Dream" series, found that government- backed loans comprised nearly 67 percent of home purchase loans in communities of color. The survey is the result new report reveals that loans insured by the Federal Housing Administration (FHA) mortgage loans originated and refinanced in Los Angeles, California; Boston, Massachusetts; Charlotte, North Carolina; Chicago, Illinois; Cleveland, Ohio; New York City, New York; and Rochester, New York. Statistics from the report of a collaboration among the Woodstock Institute, Empire Justice Center, Neighborhood Economic Development Advocacy Project, Reinvestment Partners, California Reinvestment Coalition, the Massachusetts Affordable Housing Alliance, and the Ohio Fair Lending Coalition. Data complied by the organizations encompasses indicate that borrowers in neighborhoods of color received government-backed loans ap- proximately twice as often as those in predominantly white areas. When refinancing their mortgages, numbers showed that homeowners in communities of color used government-backed avenues three times as often as those in white neighborhoods. For African-American bor- to refinance used government- backed options 3.5 times more often than white homeowners. Meanwhile, Latino borrowers utilized FHA or VA refinancing measures 2.1 times more often than their white counterparts. "These disparities are very African-Americans choosing troubling. Some folks who were eligible for a more affordable conventional loan may have been steered into an FHA loan based on their race or where they live," said Barbara VanKerkhove of the Empire Justice Center. Alexis Iwanisziw of the rowers, government-backed loans made up three of every four mortgage purchases. Among Latino borrowers, government- backed loans accounted for two of every three mortgages. Neighborhood Economic Development Advocacy Project also contributed commentary, noting, "These patterns are symptoms of a deeper prob- lem: the lack of access to prime conventional loans by borrowers and neighborhoods of color—in other words, ongoing redlining." THE M REPORT | 73 ORIGINATION SERVICING ANALYTICS SECONDARY MARKET