FDIC gives credits.After six weeks of yelling and screaming over the unfairness of it all, attorney Jack Weprin has scored a major victory over the FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). . Property owners stung by the failure of American Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. will now receive credits for money taken by the FDIC when American failed in June, a mere three weeks before semi-annual tax payments were due. The Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC) had taken 25 percent of all monies over $100,000 in the mortgage escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. accounts of 72 properties - including co-ops as well as commercial properties - saying the money, amounting to $2.23 million was not insured. Weprin, a partner in Goldberg, Weprin & Ustin, said he received "tons of calls" from attorneys whose clients were losing money and told them all to write letters. Weprin himself contacted the Real Estate Board of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , seven Congressmen, three Senators and the State Superintendent of Banking, and had the highest acclaim for Cong. Charles Schumer and his assistant, Courtney Ward. Weprin said Schumer now intends to introduce corrective legislation since mortgagors who question the health of a bank do not have the ability to withdraw escrow monies. "Clients are now afraid to put money into escrow, "Weprin noted. "One bank said, |we're healthy and if you don't make the payments we'll start foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. proceedings." On July 31, the FDIC wrote to those buildings which are not in default on their loans from American Savings Bank and notified them they have the right to offset any money due now to the FDIC. Weprin said the FDIC "advanced" the necessary escrow money it had claimed for property taxes due in July, and he is taking the remainder of monies claimed by the FDIC on his buildings as a credit toward mortgage payments. "They all hate me now down there now (at the FDIC)," Weprin sighed. "But it was worth it." |
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