By Byron Ward
& Sid Riley
& Sid Riley
This week’s program was arranged by Marianna Mayor, Jim Wise. The program speaker was Bob Calvert, Principal and Owner of Calvert Consulting as well as the Associate Pastor of First Methodist Church in Marianna. He is Pastor elect of Greenwood and Bascom United Methodist Churches.
Rev. Calvert has extensive experience in banking, has served as President/CEO of a community bank, and has chartered 88 community banks in the last 27 years, including First Capital Bank in Marianna. He is a Certified Management Consultant.
He spoke on the existing problems and transitions which are underway throughout the U.S. He stated that FHA home loans could be the next financial disaster. Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low down payment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006. Taxpayer losses are mounting on FHA’s $562 billion portfolio. According to Mortgage Bankers Association data, more than one in eight FHA loans is now delinquent – nearly triple the rate on conventional, non-subprime loan portfolios. Another 7.5% of recent FHA loans are in "serious delinquency," which means at least three months overdue.
Calvert forecasts better days ahead for much of the banking sector by the end of 2009, especially for small community banks that are not on the coast.
On the local note, (no pun intended) Bob Calvert is moving from Associate Pastor at Marianna First United Methodist Church having served for five years. His last sermon in that capacity will be delivered on June 7th. He will assume the position as Pastor for the Greenwood and Bascom United Methodist Churches, delivering his first sermon in Greenwood at 9:30 AM on June 28th, followed by at 11:00 AM with is delivery at the Bascom UMC. We wish him great success as he serves those communities!
Rev. Calvert has extensive experience in banking, has served as President/CEO of a community bank, and has chartered 88 community banks in the last 27 years, including First Capital Bank in Marianna. He is a Certified Management Consultant.
He spoke on the existing problems and transitions which are underway throughout the U.S. He stated that FHA home loans could be the next financial disaster. Last year banks issued $180 billion of new mortgages insured by the FHA, which means they carry a 100% taxpayer guarantee. Many of these have the same characteristics as subprime loans: low down payment requirements, high-risk borrowers, and in many cases shady mortgage originators. FHA now insures nearly one of every three new mortgages, up from 2% in 2006. Taxpayer losses are mounting on FHA’s $562 billion portfolio. According to Mortgage Bankers Association data, more than one in eight FHA loans is now delinquent – nearly triple the rate on conventional, non-subprime loan portfolios. Another 7.5% of recent FHA loans are in "serious delinquency," which means at least three months overdue.
Calvert forecasts better days ahead for much of the banking sector by the end of 2009, especially for small community banks that are not on the coast.
On the local note, (no pun intended) Bob Calvert is moving from Associate Pastor at Marianna First United Methodist Church having served for five years. His last sermon in that capacity will be delivered on June 7th. He will assume the position as Pastor for the Greenwood and Bascom United Methodist Churches, delivering his first sermon in Greenwood at 9:30 AM on June 28th, followed by at 11:00 AM with is delivery at the Bascom UMC. We wish him great success as he serves those communities!
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