Dwelling House Savings and Loan told to raise capital or face sale, closure

Pittsburgh Post-Gazette ^ | June 14, 2009 | Tim Grant

[rightwingintelligentsia]

For more than half a century, Dwelling House Savings & Loan has built a sound reputation for providing affordable home mortgages to Pittsburgh residents whose credit risk is too high and assets too low to qualify for a conventional bank loan. Now its own financial survival could be at stake.

The federal Office of Thrift Supervision has ordered the venerable savings and loan institution in Pittsburgh's Hill District to raise more capital by the end of June or face the possibility of being sold or shut down.

--snip--

According to Dwelling House officers, a substantial amount of the institution's reserve capital was electronically stolen by someone who tapped into its account and drained it with fraudulent automated clearing house transactions.

While the total amount funneled out of the institution is unclear, financial records compiled by Bank Tracker show Dwelling House reported a loss of $47,000 in March 2008, which spiraled to a loss of $1.8 million by March 2009.

--snip--

Dwelling House has the highest percentage of bad loans and repossessed assets of all 38 savings and loan institutions based in Pennsylvania.

[rightwingintelligentsia]

Yes, it's a local story, but just exemplifies the fraud, waste, and bad management that pervades such institutions.

Or maybe it's part of the plot from "It's A Wonderful Life." I'm not sure.

[Oratam]

For more than half a century, Dwelling House Savings & Loan has built a sound reputation for providing affordable home mortgages to Pittsburgh residents whose credit risk is too high and assets too low to qualify for a conventional bank loan. Now its own financial survival could be at stake.

Translation:

You see, if you shoot pool with some employee here, you can come and borrow money. What does that get us?

[HighlyOpinionated]

Look around and find the person now living in a million dollar house beside the airport who also has a Cessna parked in his garage. There’s where the money went.

I am a poor financial risk. I know that. I would NEVER buy a house. I prefer to rent. That way, it’s the landlord’s roof, hot water heater, appliances, etc. But then, I’m a Conservative and I think. I do not ‘feel’ that I’m owed anything. If I earned the money that bought it, it’s mine, otherwise, I rent. (Small disclaimer regarding ‘unsecured credit’ which makes me a poor financial risk.)

[squarebarb]

Office of Thrift Supervision? And Obama is saying our financial institutions need regulation?

[Oldpuppymax]

This is a black owned business in a 100% black area—The Hill district in Pittsburgh.