What's with all the Gulf Coast Bank F...

What's with all the Gulf Coast Bank Foreclosures

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Liar Liar Pants on Fire

Chicago, IL

#1 Nov 26, 2008
They have 3 on the sherriff's site as of today. What's up with that?

Been seeing their name on that site quite alot lately. Looks like a duck, quacks like a duck, must be a d*ck.
Barney Fife

Milton, LA

#2 Nov 26, 2008
Risky lending practices. I heard a builder got them pretty good.
Liar Liar Pants on Fire

Chicago, IL

#3 Nov 27, 2008
I thought that guy from Abbeville, the one from the credit union or the S&L said all these Abbeville banks didn't get into risky loans. Wonder how he concluded that?
Jackson321

Milton, LA

#4 Nov 27, 2008
Liar Liar Pants on Fire wrote:
I thought that guy from Abbeville, the one from the credit union or the S&L said all these Abbeville banks didn't get into risky loans. Wonder how he concluded that?
Mr. Patut he wants the peoples to beleeve that so they dont worry about there moneys and bring it to another bank. Mr. Patut said that in the newspaper they were safe. There is a builder that bought a Hair style place on State St. that they had to fore close on. His name is mr. Vise. Then another builder named Christopher Lebove that they had to fore close on. Builders are more risky than home owner because if the house dont sell the bank ends up with the house and a loss of moneys at Sheriff Couvellon sales. I heard these same to men also got Mr. Broussard bank in Abbeville and a bank in Kaplan and maybe Mr. Morezi bank in Erath.
Then the professional football player Mr. Branden Michell use to give away the free turkies for Thanksgiving had a bunch of properteys that Mr. Morezi bank in Erath had to fore close on. There is other one to because I saw it in the newspaper.
Liar Liar Pants on Fire

Chicago, IL

#5 Nov 27, 2008
Banking as usual for Vermilion Parish
By Rachel Worthy
Posted September 30th, 2008 by Chris Rosa
There is no disputing the fact that America is experiencing a financial crisis. With the recent decision by the U.S. House of Representatives to reject a $700 billion government bailout for American International Group (AIG) Inc. and the takeover of Fannie Mae and Freddie Mac, one might worry what effect Wall Street has on their community.
President, CEO, and Director of Abbeville Building & Loan, Noel Bajat, said that despite troubles on Wall Street, it looks like business as usual for local banks.
“We’re still making loans,” Bajat said.“We haven’t seen a slow-down in the market. In fact, we have actually closed more loans this year than we closed last year, so there’s been an increase. Locally, I don’t see that this (crisis) is gonna affect us.”
Bajat said what led to the collapse of financial institutions like Lehman Brothers Holdings and AIG is the issuance of subprime loans to people who should not have qualified for a loan.
“What happened was they made loans to people that they should not have made loans to ­‑ and they securitized those loans: either the financial institutions securitized them or Fannie Mae did,” Bajat explained.“The problem you have is when the security loses value, or you can’t even determine the value because no one wants to buy it, the banks are forced to mark that security to market.
So if they have $100 million in these securities, and they have minimal value, they’ve got to ‘write down’ that $100 million to whatever the value currently is.”
Bajat said that the write down that banks have to accommodate is taken out of their net worth, but that as long as they possess ownership they have the potential to reap the benefits.
“The only time you have the loss is when you sell it -- and you actually take the loss,” he said.“The good thing, though, is of the securities that they’re buying, because of the way they set these mortgages up, none of these securities are going to be 100 percent bad. Some of them will actually increase in value. So, over the next few years the government can actually sell the securities that they hold and actually make money, which will bring money back into the treasury.”
Government bailouts are not going to fix the problem we’re having right now, Bajat said.“I don’t think $750 billion is going to be enough,” he elaborated.“I think it’s not gonna stop the crisis. I think there’s more coming,” noting that this current problem has taken many years in the making.
“What happened is in the desire that Congress wanted to get as many people into homes as possible (that) they didn’t regulate,” Bajat said.“This is not a 2000 problem, this goes back into the ‘90s when they started that, because the economy was so good ‑ everybody had jobs and they wanted these people to get homes ‑ people were buying, and they started relaxing the rules.(Banks gave out) what I call a ‘liar loan’: An individual walks in, wants to borrow $300,000. They ask him how much money he makes and he says ‘well how much would I have to make in order to qualify for the loan?’ They tell him and he says ‘oh, I make that much’.
“(Banks didn’t) verify that,” Bajat continued.“The same thing (goes) for down payments. He says ‘I make good money but I don’t have a down payment’. The bank says ‘no problem; we’ll make you a 100 percent loan.”
Bajat said consumers are now paying for things that we’ve done over the last 20 years.“Brokers got in there and increased the problems that we had by securitizing loans that should’ve never been made in the first place - that’s where the problem started - it was excesses in the market,” he added.
So what does this mean to Louisiana or to Vermilion Parish? Bajat said there are no reasons for concern.
Liar Liar Pants on Fire

Chicago, IL

#6 Nov 27, 2008
“None of this should affect Acadiana,” he said.“I know there are no banks - and I know we don’t have them - that made any subprime loans in Vermilion Parish. There are a few in Lafayette that did, but we didn’t get involved with that. So, the economy’s good here. What’s happening on Wall Street will affect 401Ks and retirement, but only if you sell it! It’s not a loss until you take the loss, so you just sit on it and wait to see what happens with it.”
Bajat said that in addition to monitoring and avoiding subprime loans, banks are tightening their underwriting requirements for credit loans.
“For the last 30 years or better, people have been living beyond their means and using credit cards to live on,” he said.“We still have plenty of money to make out loans. We take care of our own customers. Locally, we don’t have a problem. The underwriting requirements are being tightened; you might have had a credit score of 620 and you could’ve bought just about any house you wanted, now you might need a credit score of 680-700,” he added.
Tighter requirements, Bajat said, will force individuals to be more aware of the payments they are making because if they have any delinquencies, it will work against them.
“They’re tightening the underwriting requirements, but that’s not tightening the credit,” he said.“The credit is still available, it’s just available to people that have the ability to re-pay. Whereas, the subprime was available to people that did not have the ability to re-pay.”
Bajat said Acadiana is not in a crisis and if you have the ability to re-pay a loan, you should be able to find one, and with a relatively low interest rate.
“Acadiana is not in a crisis. We have billions of dollars that are coming in from Katrina and Rita and Gustav and Ike, that will allow people to work. All of this is helping Louisiana. It’s not helping other states but it’s definitely helping (us), he stated. However,“if you’re overextended, the thing you need to do is start working to bring yourself back in line,” he concluded.
Liar Liar Pants on Fire

Chicago, IL

#7 Nov 27, 2008
Banking as usual for Vermilion Parish
By Rachel Worthy
Posted September 30th, 2008 by Chris Rosa
Customers in drive-thru at
Gulf Coast Bank in Abbeville
showing business as usual for
local banks.
Photo by: Rachel Worthy

There is no disputing the fact that America is experiencing a financial crisis. With the recent decision by the U.S. House of Representatives to reject a $700 billion government bailout for American International Group (AIG) Inc. and the takeover of Fannie Mae and Freddie Mac, one might worry what effect Wall Street has on their community.

President, CEO, and Director of Abbeville Building & Loan, Noel Bajat, said that despite troubles on Wall Street, it looks like business as usual for local banks.

“We’re still making loans,” Bajat said.“We haven’t seen a slow-down in the market. In fact, we have actually closed more loans this year than we closed last year, so there’s been an increase. Locally, I don’t see that this (crisis) is gonna affect us.”

Bajat said what led to the collapse of financial institutions like Lehman Brothers Holdings and AIG is the issuance of subprime loans to people who should not have qualified for a loan.

“What happened was they made loans to people that they should not have made loans to ­‑ and they securitized those loans: either the financial institutions securitized them or Fannie Mae did,” Bajat explained.“The problem you have is when the security loses value, or you can’t even determine the value because no one wants to buy it, the banks are forced to mark that security to market.

So if they have $100 million in these securities, and they have minimal value, they’ve got to ‘write down’ that $100 million to whatever the value currently is.”

Bajat said that the write down that banks have to accommodate is taken out of their net worth, but that as long as they possess ownership they have the potential to reap the benefits.

“The only time you have the loss is when you sell it -- and you actually take the loss,” he said.“The good thing, though, is of the securities that they’re buying, because of the way they set these mortgages up, none of these securities are going to be 100 percent bad. Some of them will actually increase in value. So, over the next few years the government can actually sell the securities that they hold and actually make money, which will bring money back into the treasury.”

Government bailouts are not going to fix the problem we’re having right now, Bajat said.“I don’t think $750 billion is going to be enough,” he elaborated.“I think it’s not gonna stop the crisis. I think there’s more coming,” noting that this current problem has taken many years in the making.

“What happened is in the desire that Congress wanted to get as many people into homes as possible (that) they didn’t regulate,” Bajat said.“This is not a 2000 problem, this goes back into the ‘90s when they started that, because the economy was so good ‑ everybody had jobs and they wanted these people to get homes ‑ people were buying, and they started relaxing the rules.(Banks gave out) what I call a ‘liar loan’: An individual walks in, wants to borrow $300,000. They ask him how much money he makes and he says ‘well how much would I have to make in order to qualify for the loan?’ They tell him and he says ‘oh, I make that much’.

“(Banks didn’t) verify that,” Bajat continued.“The same thing (goes) for down payments. He says ‘I make good money but I don’t have a down payment’. The bank says ‘no problem; we’ll make you a 100 percent loan.”

Bajat said consumers are now paying for things that we’ve done over the last 20 years.“Brokers got in there and increased the problems that we had by securitizing loans that should’ve never been made in the first place - that’s where the problem started - it was excesses in the market,” he added.
So what does this mean to Louisiana or to Vermilion Parish? Bajat said there are no reasons for concern.
Liar Liar Pants on Fire

Chicago, IL

#8 Nov 27, 2008
“None of this should affect Acadiana,” he said.“I know there are no banks - and I know we don’t have them - that made any subprime loans in Vermilion Parish. There are a few in Lafayette that did, but we didn’t get involved with that. So, the economy’s good here. What’s happening on Wall Street will affect 401Ks and retirement, but only if you sell it! It’s not a loss until you take the loss, so you just sit on it and wait to see what happens with it.”

Bajat said that in addition to monitoring and avoiding subprime loans, banks are tightening their underwriting requirements for credit loans.

“For the last 30 years or better, people have been living beyond their means and using credit cards to live on,” he said.“We still have plenty of money to make out loans. We take care of our own customers. Locally, we don’t have a problem. The underwriting requirements are being tightened; you might have had a credit score of 620 and you could’ve bought just about any house you wanted, now you might need a credit score of 680-700,” he added.

Tighter requirements, Bajat said, will force individuals to be more aware of the payments they are making because if they have any delinquencies, it will work against them.

“They’re tightening the underwriting requirements, but that’s not tightening the credit,” he said.“The credit is still available, it’s just available to people that have the ability to re-pay. Whereas, the subprime was available to people that did not have the ability to re-pay.”

Bajat said Acadiana is not in a crisis and if you have the ability to re-pay a loan, you should be able to find one, and with a relatively low interest rate.

“Acadiana is not in a crisis. We have billions of dollars that are coming in from Katrina and Rita and Gustav and Ike, that will allow people to work. All of this is helping Louisiana. It’s not helping other states but it’s definitely helping (us), he stated. However,“if you’re overextended, the thing you need to do is start working to bring yourself back in line,” he concluded.
Most Interesting Part

Chicago, IL

#9 Nov 27, 2008
“What happened is in the desire that Congress wanted to get as many people into homes as possible (that) they didn’t regulate,” Bajat said.“This is not a 2000 problem, this goes back into the ‘90s when they started that, because the economy was so good ‑ everybody had jobs and they wanted these people to get homes ‑ people were buying, and they started relaxing the rules.(Banks gave out) what I call a ‘liar loan’: An individual walks in, wants to borrow $300,000. They ask him how much money he makes and he says ‘well how much would I have to make in order to qualify for the loan?’ They tell him and he says ‘oh, I make that much’.
“(Banks didn’t) verify that,” Bajat continued.“The same thing (goes) for down payments. He says ‘I make good money but I don’t have a down payment’. The bank says ‘no problem; we’ll make you a 100 percent loan.”
Liar Loan

Chicago, IL

#10 Nov 27, 2008
What's a liar loan again?
Jackson321

Milton, LA

#11 Nov 27, 2008
Mr. Bajet dont understand that Branden Michell dont pay Mr. Morezi bank in Erath and I know them other two builder dont pay Mr. Patut bank Gulf Coast. Then the peoples have that FBIC insurance dont lose their moneys in the bank. The bank lose money and have to charge more for customer who borrow moneys and charge more money for NSF check you right. The bank should know those peoples risky and might not paid back Mr. Morezi and Mr. Patut. Then Mr. Morezi son Demos have to sue them and the bank have to sell the land at Mr. Couvellon sales. That happen in Vermillion Parish. It be in the back of the newspaper in small printed headline. There be more to.
chauvin

Milton, LA

#12 Nov 27, 2008
Liar Loan wrote:
What's a liar loan again?
Bajat knows better than that. He has been in the banking business for decades, and he was in Lafayette before he was in Abbeville. With the AIG debacle and the $1,000,000,000,000 bank bailout, it is impossible we don't have some problems with the loans. Maybe not as bad as other parts of the nation, but it is here, nevertheless. Everyone wants to cast the blame on the others. The economy is not good in Vermilion Parish, especially with respect to big ticket items, and the $50 per barrel oil will hurt us, too. When the economy goes south, so does bad loans. They work in tandem with each other. People are very concerned about their money. Losses of 50% or greater in the stock market has affected pensions, and other investments. Banks want to capitalize on this by saying the money is "safe" if invested with them. This may be true with FDIC insurance, but again, this adds to the cost of the bailout. The trillion dollar bailout will affect every American living today, and every American born for decades to come. Don't let anyone tell you differently.
Mo Money Better

United States

#13 Nov 27, 2008
chauvin wrote:
<quoted text>
Bajat knows better than that. He has been in the banking business for decades, and he was in Lafayette before he was in Abbeville. With the AIG debacle and the $1,000,000,000,000 bank bailout, it is impossible we don't have some problems with the loans. Maybe not as bad as other parts of the nation, but it is here, nevertheless. Everyone wants to cast the blame on the others. The economy is not good in Vermilion Parish, especially with respect to big ticket items, and the $50 per barrel oil will hurt us, too. When the economy goes south, so does bad loans. They work in tandem with each other. People are very concerned about their money. Losses of 50% or greater in the stock market has affected pensions, and other investments. Banks want to capitalize on this by saying the money is "safe" if invested with them. This may be true with FDIC insurance, but again, this adds to the cost of the bailout. The trillion dollar bailout will affect every American living today, and every American born for decades to come. Don't let anyone tell you differently.
Its interesting that the Meridional only interviewed Bajat, which is probably the smallest of the banking institutions in Vermilion Parish. Why not also get the opinions of Capital One, Gulf Coast Bank, Bank of Erath. Take a look at the Sheriff's Sales - they are up substantially over the past year.

Bajat may not call them "subprime" loans, but with the substantial increase in foreclosures and Sheriff's Sales, they certainly aren't performing loans.

But, then that's the Meridional for you - they wouldn't want to cast any of their advertisers in a potentially questionable light would they, imho.
Mo Money Better

United States

#14 Nov 27, 2008
Mo Money Better wrote:
<quoted text>
Its interesting that the Meridional only interviewed Bajat, which is probably the smallest of the banking institutions in Vermilion Parish. Why not also get the opinions of Capital One, Gulf Coast Bank, Bank of Erath. Take a look at the Sheriff's Sales - they are up substantially over the past year.

Bajat may not call them "subprime" loans, but with the substantial increase in foreclosures and Sheriff's Sales, they certainly aren't performing loans.

But, then that's the Meridional for you - they wouldn't want to cast any of their advertisers in a potentially questionable light would they, imho.
Oh, Oh.... somebody don't like hearing the truth!
Editor N Thief

United States

#15 Nov 27, 2008
Mo Money Better wrote:
<quoted text>
Its interesting that the Meridional only interviewed Bajat, which is probably the smallest of the banking institutions in Vermilion Parish. Why not also get the opinions of Capital One, Gulf Coast Bank, Bank of Erath. Take a look at the Sheriff's Sales - they are up substantially over the past year.

Bajat may not call them "subprime" loans, but with the substantial increase in foreclosures and Sheriff's Sales, they certainly aren't performing loans.

But, then that's the Meridional for you - they wouldn't want to cast any of their advertisers in a potentially questionable light would they, imho.
True story. I took out an ad in the Meridional advertising the Sheriff's Sale of a Christopher J Master Designs (Chris LaBauve) spec house that we foreclosed on. I was told by the editor of the Meridional that if the ad mentioned LaBauve's name in it that (roughly quoted) "it won't run in my paper. It's unethical" and "Chris was having problems"

So, I had to negotiate with the editor to run the ad, but without mentioning Chris LaBauve's name in the ad. Why? Because LaBauve also advertised in the Medidional. Mind you, I was paying for the ad. That's the kind of free, open press you have. Given all the people that have lost money as a result of LaBauve, that's also some twisted sense of ethics, in my opinion.

Not surprising the Meridional only interviewed Abbeville Building & Loan and no one else - they're probably not advertisers.
Banker

Milton, LA

#16 Nov 27, 2008
Mo Money Better wrote:
<quoted text>
Its interesting that the Meridional only interviewed Bajat, which is probably the smallest of the banking institutions in Vermilion Parish. Why not also get the opinions of Capital One, Gulf Coast Bank, Bank of Erath. Take a look at the Sheriff's Sales - they are up substantially over the past year.
Bajat may not call them "subprime" loans, but with the substantial increase in foreclosures and Sheriff's Sales, they certainly aren't performing loans.
But, then that's the Meridional for you - they wouldn't want to cast any of their advertisers in a potentially questionable light would they, imho.
I don't see how Bajat can say knows what is happening at Gulf Coast and Capital One. He doesn't work there. Local banks did loan people money on home loans. Some of these loans were ARMS (adjustable rate mortgage loans) Income qualifications were based on the monthly payment at the time the loan was taken out, not at the time the payments went up. A $700 payment could be $900 or more in a few years. Then, the homeowner can no longer afford the note. Then comes foreclosures. And, if the house was in the southern part of the parish, it probably lost value due to the storm surge issues, and the bank could lose.
Also, of interest, someone who works at the same financial institution in Abbeville as Mr. Bajat is trying to sell his house in Abbeville. The advertisement states 100% financing, if qualified. This is another recipe for disaster because if the home loses value, and the note is not paid, the bank probably won't get their money back. The same thing happens on car loans with no down payment.
Remember, banks have to loan money to make money. It is a competitive business. To get business, sometimes, banks have to loan money to marginal borrowers. Another possible loss.
Then comes the divorce issues, where neither party can afford the house without the others income. If the house can't be sold quickly, a foreclosure may be in order.
To sum it up, loaning money always has some risk. But, with proper screening, defaults can be kept at a minimum.
Banker

Milton, LA

#17 Nov 27, 2008
One other thing, loaning money to builders to build spec. houses is normally considered moderate to high risk loans. Time has a way of healing. Back in 1986 until the early 1990's, banks had to "eat" a lot of these loans because the completed houses wouldn't sell.
Then, it is my understanding, some of the builders in this parish did not even complete the houses with the construction loans they received. The banks will probably take a hit on these, as well. Some bad lending decisions were made in this parish by certain banks.
Mo Money Better

United States

#18 Nov 27, 2008
Banker wrote:
One other thing, loaning money to builders to build spec. houses is normally considered moderate to high risk loans. Time has a way of healing. Back in 1986 until the early 1990's, banks had to "eat" a lot of these loans because the completed houses wouldn't sell.

Then, it is my understanding, some of the builders in this parish did not even complete the houses with the construction loans they received. The banks will probably take a hit on these, as well. Some bad lending decisions were made in this parish by certain banks.
You are correct Banker. Two of the builders, LaBavue and Vice, did not even complete the spec houses with the construction loans. Not only were bad lending decisions made, but the construction loans were not administered with the proper oversight. Otherwise, no way a spec builder can get the final draw if the construction is not complete and the banker is conducting on-site inspections and auditing the builder's checking account activity.
Banker

Milton, LA

#19 Nov 27, 2008
You are correct. Federal banking laws are very clear. Look into fraud. Case law is clear, and not only the builders, but the banks could be liable, especially if the subs and vendors weren't paid, or if the banks lose money. The loan agreement signed by the builders and the banks should be specific. If the builders used the money for anything other than construction of the homes, which is usually the case, then the builders could be charged with felony bank fraud. This is starting to become common, especially in certain areas of the country where the housing market has dried up.
carlos

Milton, LA

#20 Nov 27, 2008
Editor N Thief wrote:
<quoted text>
True story. I took out an ad in the Meridional advertising the Sheriff's Sale of a Christopher J Master Designs (Chris LaBauve) spec house that we foreclosed on. I was told by the editor of the Meridional that if the ad mentioned LaBauve's name in it that (roughly quoted) "it won't run in my paper. It's unethical" and "Chris was having problems"
So, I had to negotiate with the editor to run the ad, but without mentioning Chris LaBauve's name in the ad. Why? Because LaBauve also advertised in the Medidional. Mind you, I was paying for the ad. That's the kind of free, open press you have. Given all the people that have lost money as a result of LaBauve, that's also some twisted sense of ethics, in my opinion.
Not surprising the Meridional only interviewed Abbeville Building & Loan and no one else - they're probably not advertisers.
The bigger question is LaBauve paying the newspaper for the ad he is running? His former landlord said he did not pay him. He stuck the locally owned lumber yard, had several foreclosures, has judgments, and other debts. If I were Ms. Cormier, I would make him pay in advance, by CASH!

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