Siuslaw Blog

Tips to Help Guide Consumers Against Loan Scams

In these times, it is prudent to be armed with information to help consumers ward off loan scams.

“Many Americans are being targeted by scams that promise to help them avoid foreclosure or refinance their existing mortgage to a lower rate,” said Fawnda Thompson, assistant vice president and manager with Siuslaw Mortgage. “It is essential that homeowners be vigilant and protects themselves against these scams so they don’t wind up in even worse financial situations.”

Consumers who are having financial troubles should contact their mortgage lender immediately. This makes them less vulnerable to be taken in by loan scams, which come in the form of unsolicited phone calls, emails or letters. Knowing the warning signs is imperative. According to the ICBA, be wary of any company that does the following:

· Guarantees to stop the foreclosure process – no matter what your circumstances

· Instructs you to not contact your lender, lawyer or credit or housing counselor

· Collects a fee before providing you with any service

· Accepts payment only by cashier’s check or wire transfer

· Encourages you to lease your home so you can buy it back over time

· Tells them to make your mortgage payments directly to them, rather to your lender

· Tells you to transfer your property deed or title to them.

· Offers to buy your house for cash at a fixed price that is not set by the housing market at the time of sale

· Offers to fill out paperwork for you.

· Pressures you to sign paperwork you haven’t had a chance to read or don’t understand

If consumers think they have been the victim of a loan scam, they should contact their state attorney general’s office to file a complaint and learn the next steps to repair any damage incurred as a result of the scam.

“Any community bank customer who is having problems with a mortgage should visit a local community bank for more information about legitimate programs and loan options available to them,” said Thompson.

August 5th, 2009

Where Are the Credit Unions?

With the economic downturn there has been more than enough news about commercial banks and the struggles they face to survive. Whether it be CNN, Fox News, your local newspaper or favorite blog, it seems that everyone is talking about what is going to happen to the banking system during the next few years. However, there has been one noticeable oversight of reporting and that begs we ask the question: What’s going on with the credit unions?

As you may have guessed, credit unions are struggling just as much as commercial banks in this economy. Nationwide 5 credit unions were closed or placed into conservatorship in the first four months of this year and according to the state’s Division of Finance and Corporate Securities web site, there have been five credit union branches closed in Oregon in 2009. Of those five, Oregon Community Credit Union closed their four Portland-area branches, which serviced 15% of their customer base.

Credit unions have a history of aggressively pursuing consumer loans, such as auto, RV and home equity loans, and have nearly cornered the market. With rising unemployment, default rates are increasing on all types of loans, especially consumer loans, which has a noticeable effect on the credit union’s bottom line.

In terms of financial performance, credit unions are not immune to the effects of the souring economy. For the period ending March 31, 2009 Selco reported a net loss of $1.2 million and a $2.4 million reduction in equity. Oregon Community Credit Union reported a net loss of $7.6 million and a $7.5 million reduction in equity. While credit unions are classified as non-profit institutions, the fact remains that they are still a business and businesses can keep their doors open only as long as they are profitable.

Siuslaw Bank is proud to have a strong heritage of consistent performance throughout our 45 years in business. This recession is affecting almost every industry, but we here at Siuslaw have remained strong because of our conservative business plan and commitment to one-on-one service. If you have any questions about our financial performance, please don’t hesitate to contact your local branch!

- Jesse Williams, Credit Analyst at Siuslaw Bank

June 24th, 2009

Siuslaw Bank Celebrates 45 Years!

More than 150 Siuslaw Financial Group employees, officers, directors and guests gathered at the Florence Elks Lodge on Saturday, January 17, to celebrate Siuslaw Bank’s 45^th Anniversary.

The evening included a buffet dinner, brief history of Siuslaw Bank, employee introductions, and awards for those with milestone anniversaries or outstanding accomplishments. Carl Hultenberg, COO of Siuslaw Bank, received this year’s Chairman’s Award.

1 comment January 26th, 2009

FDIC Deposit Insurance Coverage

[Editor’s Note: Siuslaw Bank is FDIC-insured. The following summary has been issued by the FDIC and can be found on their website at www.fdic.gov.]

“The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects against the loss of insured deposits if an FDIC-insured bank or savings association fails. FDIC deposit insurance is backed by the full faith and credit of the United States government. Since the FDIC was established, no depositor has ever lost a single penny of FDIC-insured funds.

FDIC insurance covers funds in deposit accounts, including checking and savings accounts, money market deposit accounts and certificates of deposit (CDs). FDIC insurance does not, however, cover other financial products and services that insured banks may offer, such as stocks, bonds, mutual fund shares, life insurance policies, annuities or municipal securities.

There is no need for depositors to apply for FDIC insurance or even to request it. Coverage is automatic.

To ensure funds are fully protected, depositors should understand their coverage limits. The FDIC provides separate coverage for deposits held in different account ownership categories. The coverage limits shown in the chart below refer to the total of all deposits that an accountholder has in the same ownership categories at each FDIC-insured bank. The chart shows only the most common ownership categories that apply to individual and family deposits, and assumes that all FDIC requirements are met.

Basic FDIC Deposit Insurance Coverage Limits*

Single Accounts (owned by one person): $250,000 per owner

Joint Accounts (two or more persons): $250,000 per co-owner

IRAs and certain other retirement accounts: $250,000 per owner

Trust Accounts: $250,000 per owner per beneficiary (subject to specific limitations and requirements)

Corporation, Partnership and Unincorporated Association Accounts: $250,000 per corporation, partnership or unincorporated association

Employee Benefit Plan Accounts: $250,000 for the non-contingent, ascertainable interest of each participant

Government Accounts: $250,000 per official custodian

Non-interest Bearing Transaction Accounts: Unlimited coverage – only at participating FDIC insured banks [such as Siuslaw Bank]**

* On January 1, 2010, the standard coverage limit will return to $100,000 for all deposit categories except IRAs and Certain Retirement Accounts, which will continue to be insured up to $250,000 per owner.

** Unlimited deposit insurance coverage is available through December 31, 2009, for non-interest bearing transaction accounts at institutions participating in FDIC’s Temporary Liquidity Guarantee Program.

If you have questions about FDIC coverage limits and requirements, visit www.myFDICinsurance.gov, call toll-free 1-877-ASK-FDIC or ask a representative at your bank.”

November 19th, 2008

President's Letter – Lonnie Iholts: Answers for Concerned Customers

Given the turbulent financial market, the unusual rate environment and the media’s 24/7 coverage of this topic, we’ve prepared answers to some commonly asked questions to assure our customers that their deposits are safe.

Are my deposits safe with Siuslaw Bank?
Your deposits are safe at Siuslaw Bank. All deposits are FDIC-insured up to $100,000 as an individual, with greater coverage for joint accounts, IRAs and trusts [Editor's Note: FDIC Deposit Insurance Coverage Limits have increased since this post was written. For new Coverage Limits, please view the post, "FDIC Deposit Insurance Coverage"]. In addition, Siuslaw Bank offers CDARS, which gives you access to multi-million dollars FDIC insurance.

Is Siuslaw Bank safe?
Siuslaw Bank is well-capitalized and financially sound, as we have been for the last 45 years. As the oldest independent community bank in Lane County, we are considered safe and secure and considered to be a “well performing” bank. Our 2007 Annual Report is at our web site, www.siuslawbank.com and you can visit www.fdic.gov and obtain our quarterly Call Reports.

Did Siuslaw Bank engage in any subprime mortgage lending?
Siuslaw Bank did not engage in any subprime mortgage lending. Unlike some of our competitors, we did not get into the type of loans that are bringing down some larger organizations. While foreclosures in our servicing portfolio are up, our customers may notice a filling in the paper – we are filing as the servicer for the investor. Therefore, the investor (Freddie Mac, Fannie Mae, and State of Oregon) will be responsible for any loss.

Does Siuslaw Bank have any “bad” loans?
As Siuslaw Bank is conservative, we expect no major hits to our loan portfolio.

What are benefits of banking at Siuslaw?
Siuslaw is safe and stable. An advantage of the financial downturn is that local banks can thrive. As stocks for larger banks plummet, as reported in our second quarter year-to-date operating results, SFG’s earnings were up 3.1% from the same period last year. In addition, SFG was among a handful of banks in the Pacific Northwest which had a year-to-date gain in quoted shares price, an indication of investor confidence when many financial institutions in the region are selling for 60-70% of book value.

September 22nd, 2008

The FDIC Publishes Money Tips for All Ages and Different Stages of Life

The Spring 2008 issue of FDIC Consumer News is a special edition entitled “Money Tips for All Ages: Your Finances at Different Stages of Life.” It features practical suggestions for everyone plus special recommendations for teens through retirees. The FDIC encourages financial institutions, financial educators and other interested parties to make the information in FDIC Consumer News widely available, including reprinting or linking to the material and making copies with their name, logo, a special message and/or self-mailing information. Financial educators can use FDIC Consumer News as a resource for useful consumer information. Educators and their students can sign up for a free subscription and see current and back issues online. (See the latest newsletter and subscription information.)

Add comment August 27th, 2008

June is National Homeownership Month!

June is National Homeownership Month and now is a great time to become a homeowner!

Buying a home is a complicated process, and it can be particularly intimidating for the first-timer. Siuslaw Mortgage believes that purchasing your home should be an exciting experience, not a stressful one. We’ve compiled a helpful checklist of things for you to consider before buying a home. While the following timeline begins one year before you hope to move in, you can arrange your finances and buy a home in less time, if necessary. Siuslaw Mortgage is here to make it happen.

12 Months Ahead:

Obtain your credit reports. Errors on your reports can make it difficult to obtain the financing you deserve. You can get free copies of your reports from the three major credit bureaus – Equifax, Experian and TransUnion – at AnnualCreditReport.com. Look for accounts that aren’t yours, collection accounts for debts you don’t owe and negative marks (other than bankruptcy) that are older than seven years. Contact the bureaus to have any errors removed.

Obtain your FICO credit scores. While many factors are considered, your FICO credit scores help determine the rates and terms of your mortgage loan. You can purchase your FICO scores for all three credit bureaus at MyFico.com.

Manage your debt. Most people needn’t pay off their student loans, auto loans or other generally low-rate debt before obtaining a mortgage. What you’ll want to eliminate are credit-card balances, payday loans, and other signs you may be living above your means.

Save, save, save. Do your best to put as much money aside as possible. A significant down payment can open the door for great financing options. Ideally, you’ll also have enough left over after to cover your mortgage payments for two or three months.

Consider automatic bill-pay. A single 30-day late payment can subtract 100 points off your credit score, and it can take several months to recover. Make sure every bill gets paid on time. Consider using automatic debits, so payments come directly from your checking account, or an online bill-payment system’s recurring-payment feature.

6 Months Ahead:

Consider your mortgage options. Siuslaw Mortgage can help you figure out which financing option best suits you and your family. We have many loan programs to choose from, each with their own advantages. Our mortgage loan officers are friendly and knowledgeable, and can help you understand the details of each program.

Start calculating how much house you can buy. Once you’ve settled on a type of mortgage and have an idea of your down payment, our mortgage loan officers can help you determine how much house you can afford to purchase and maintain. We understand that you’ll have other expenses on top of your monthly mortgage payment, and can help you factor in the cost of property taxes, insurance, and homeowners association fees.

3 Months Ahead:

Reduce your credit utilization. The FICO credit-scoring formula is sensitive to the amount of available limits you’re using on your credit cards and other revolving lines of credit. Try to keep that balance below 30%, or even lower if possible.

Don’t open or close any accounts. Until the mortgage process is completed and you’ve moved into your new home, continue to avoid actions that could potentially harm your credit, such as opening credit accounts or closing old ones.

2 Months Ahead:

Get an idea of the mortgage rate you can expect. Our mortgage loan officers can provide you with an idea of the type of rate you may qualify for based on your FICO credit scores, income and other factors.

Get approved for a mortgage ahead of time. Pre-approval, in which we provide a commitment to make you a loan, is different than pre-qualification, which merely gives you an idea of the size of the mortgage you might afford. Getting pre-approved puts you in a much stronger position with sellers.

Begin researching neighborhoods and look for an agent. Check Internet listings, attend open houses and consider selecting an experienced real estate agent to help you refine your search.

Once You’ve Found a Home and Your Offer Is Accepted:

Secure your mortgage. Siuslaw Mortgage can help you secure your loan quickly so you can enjoy your new home as soon as possible.

Arrange for an appraisal, home inspection and walk-through. The appraisal is necessary for your mortgage loan to be approved. An inspection isn’t necessarily required, but can alert you to serious problems before the deal closes. The walk-through is usually done within 24 hours of the deal closing, so you can make sure that the home sellers have performed any agreed-upon repairs and the place is in move-in condition.

Purchase homeowners insurance. Besides offering peace of mind, homeowners insurance is required in order for your loan to be approved. You’ll also need to bring proof of this insurance to your closing.

Confirm how much money you’ll need at closing. “Closing” is the time to sign all the paperwork and pay agreed-upon amounts, which can include your down payment and share of legal fees, paperwork costs, property taxes and title insurance.

Enjoy your new home! Siuslaw Mortgage is truly excited for you, and our Loan Servicing department is available to help should you have any questions regarding your payments. We want you to enjoy your home for as long as you want to live there.

1 comment June 13th, 2008

April is Community Banking Month!

Siuslaw Bank will join community bankers throughout the nation to celebrate the month of April as Community Banking Month. This year community bankers will make a collective effort to inform the public of the important economic and social contributions local banks make in their communities.

Siuslaw Bank will focus on educating local youth on the importance of saving throughout the month long celebration. As part of this effort, the Bank will host an essay contest entitled, “Why It’s Important to Save.” Winning essays will be published in local newspapers.

Siuslaw Bank will culminate Community Banking Month on April 29, 2008 with “Teach Children to Save Day,” when employees of the Bank will visit community classrooms to mentor elementary school children on the importance of excellent saving habits.

“I’m proud to unite with other community bankers across the state and nation to display our dedication to serving our customers, our state, and our country the best way we know how,” said Johan Mehlum, Siuslaw Bank CEO and Chairman of the Board. “We are proud of our community and we are dedicated to serving our community and the citizens and businesses that reside and operate here. Our bank has a different philosophy than larger institutions. We are uniquely committed to the local area and our focus lies in helping our community to grow and prosper.”

Community banks are independent, locally owned and operated institutions. The more than 8,300 community banks across America today are often recognized for personalized and individual service, low fees and focus on the local economy.

Founded in 1964, Siuslaw Bank is Lane County’s oldest independent bank.

1 comment April 4th, 2008

Tons of Change!

Above: Coins collected for a previous Tons of Change event

Will a Guinness Book for World Records award take place on Saturday, April 5? Our sources say yes. On Saturday, April 5 Siuslaw Bank’s Cottage Grove office will host the official weigh-in for the Boys & Girls Clubs’ “Tons of Change” campaign.

Siuslaw Bank employees, along with volunteers from the community, KVAL, and five members of the University of Oregon Women’s Basketball team, will be on hand to weigh nearly 1,000 buckets of coins collected throughout the Emerald valley, in hopes of setting a world record for collecting over one ton of coins for charity.

“Our goal is to collect a minimum of one ton of coins,” said Sherman Smith, President, Board of Director for the Boys & Girls Clubs of Emerald Valley. “We have an estimated 500 to 600 pounds of coins on hand with more coming in. Visually it will be a good show.”

Siuslaw Bank is excited to support the campaign, which will benefit the Boys & Girls Clubs of Emerald Valley and finance many of their day-to-day operations assisting under-privileged children throughout the greater Eugene area.

“We have long admired the good work the Boys & Girls Clubs do for our youth and are happy to help host the Tons of Change event,” says Robert Ball, Vice President at Siuslaw Bank and manager of the Cottage Grove office.

The “Tons of Change” event both wraps up the annual National Boys & Girls Clubs Week and kicks off Community Banking Month, which focuses on the positive impact local banks make on their communities.

“Community Service is an integral component of our philosophy,” says Lonnie Iholts, President of Siuslaw Bank. “Our culture centers on our dedication and commitment to serving our community. Our original founders were comprised of community leaders and that truth still holds today.”

2 comments April 4th, 2008

Builder Appreciation Party!

On Thursday, February 21st, Siuslaw Bank employees said “thank you” to local builders and realtors by giving an appreciation party in their honor! The event was held at the Valley River Village branch, where a great time was had by all.

(Above, left to right) Barbara Newman, Judy Gould, and Virginia Brooks (all from Siuslaw Mortgage) at the Builder Appreciation Party.

(Above, left to right) Cathryn Wilson and Lacie Johnson (both from Siuslaw Bank) enjoy the party.

(Above, left to right) Latisha Abian, Cathryn Wilson, Karen Cummins, and Darvin Fowler (all from Siuslaw Bank’s Valley River Village branch) enjoy the party.

1 comment February 29th, 2008