Most banks are insured by the FDIC (Federal Deposit Insurance Company), and in being so insured they are required to report quarterly on a vast amount of financial data. This data provides us our first peek at which institutions may have opportunities for us to capitalize on and in what amounts.
Commercial Banks tend to do a lot of business lending C&I lending and the like. This does not mean that they do not offer mortgages. Many commercial banks are heavily involved in all manner of mortgage lending often with an emphasis on construction and development loans.
Savings Banks also do all types of loans but they focus primarily on the consumer. Regardless of name they largely make make commercial, construction, multifamily, and residential mortgage loans but perhaps much less C&I.
Credit Unions have not been a major part of my practice, but that doesn’t mean that there aren’t opportunities. Credit Unions are regulated similarly to banks but you will hear bankers complain that the regulations are less stiff and less costly to maintain offering credit unions unfair advantages. Generally a credit union’s membership has to share some demographic or geographic commonality, no matter how loose.
At the time of this writing the National Credit Union Association is showing more than $850MM in OREO (Other Real Estate Owned, also known as Bank Owned or Foreclosed Property). While FDIC insured institutions are showing more than $29B in REO.
There are a variety of governing bodies both federal and at the state level.
Board of Governors of the Federal Reserve SystemFederal Reserve Consumer Help PO Box 1200 Minneapolis, MN 55480 Phone: (888) 851-1920
The Board of Governors of the Federal Reserve oversees state-chartered banks and trust companies that belong to the Federal Reserve System.
Federal Deposit Insurance CorporationCompliance and Consumer Affairs 550 17th Street, N.W. Washington. DC 20429 Phone: (202) 942-3100 Toll-Free: (877) 275-3342 Hearing Impaired: (800) 925-4618 or (202) 942-3147
The Federal Deposit Insurance Corporation regulates state-chartered banks that do not belong to the Federal Reserve System.
Office of the Comptroller of the CurrencyOffice of the Ombudsman Customer Assistance Unit 1301 McKinney Street, Suite 3710 Houston, TX 77010 Toll-Free: (800) 613-6743
The Office of the Comptroller of the Currency regulates banks that have the word “National” in or the letters “N.A.” after their names.
National Credit Union AdministrationFraud Hotline Federal Investigations 1755 Duke Street, Suite 6043 Alexandria, VA 22314-3428 Toll-Free (800) 827-9650 Phone: (703) 518-6330
The National Credit Union Administration regulates federally charted credit unions.
Office of Thrift SupervisionConsumer Programs 1700 G Street, N.W. Washington, DC 20552 Phone: (202) 906-6237 Toll-Free (800) 842-6929
The Office of Thrift Supervision oversees federal savings and loans and federal savings banks.
The OCC has taken over supervision of all the institutions previously overseen by the OTS.
In addition to these federal bodies state have their own governance. For example Massachusetts has the Division of Banks.
The only thing you need to know about these organizations for our purposes is that you can get a wealth of information from them partially due to the FOIA (Freedom of Information Act). Both the FDIC and the National Credit Union Administration have vast databases information that you will use to find the right prospects.
In addition to the above-mentioned Fannie Mae and Freddie Mac are quasi-governmental agencies responsible for the disposition of billions in REO and non-performing loans, however these institutions use layers of outsourcing which makes them impossible to work with directly for the average investor or broker.