HOA Nut House

Recently I discovered the banks that management companies in some cases force hoa's to use are not as honest and have more control over your money than you do. Being on of the thousands of HOAs caught up in the 1st National of AZ bank failure. That on June 4th, 2008 the CAI owned bank (owner was on the CAI board at the same time Carpenter was on the board) moved association funds without authorization.

Heres what I have found thus far.

1st National had become insolvent so the Federal Reserve on June 5th held a meeting with 1st national to see what they planned to do about it. Knowing that this wasn't a good thing. On June 4, 2008 1st National issued a letter to all the management companies. Stating that a recent CAI National Meeting it was agreed that auditors would give bad reviews of management companies who allowed thier clients to hold more than 100,000 in any bank.
1st National then goes on to say that because 1st National holds 3 charters that they are effectively insured up to 300,000.00. So to prevent the management company from getting into trouble (ha ha) they moved some of our funds from 1st National to Heritage Bank. Of the three banks Heritage was in the most financial trouble. 1st National of AZ had all the assets. Any funds any association held over 100k was transfered into either Heritage or 1st National of Nevada. Why? To beef up the assets in hopes of showing the Federal Reserve at the meeting the next day that they were solvent. Shuffleing money doesn't make you solvent. So, anyway the banks justified their moving of association funds by saying it was to protect the associations becuase the funds were moved to ensure they were FDIC insured.

This was the first clue to management companies that the bank was failing. After the meeting with the Federal Reserve the bank was served with a Cease and Desit Order and was ordered that they could not payout any dividends or anything unless they had the authorization of the Federal Reserve. This was served on June 18, 2008. By June 30,2008 they had already been forced to merge all three banks into one. What this did was elimenated the 300k insurance they said they had by having 3 charters because the bank was now 1. HOAs are now back in the same place they were before June 4, 2008. Then by July 25the the OCC had taken the bank over and given it to the FDIC. Who then sold the assets to Mutual of Omaha.

Then Mutual of Omaha then named the former president of 1st National as the president of the western region for all Mutual of Omaha banks. Interesting huh. This provides Mutual of Omaha the opportunity to corner the market on HOAs. The CAI now can still have control of the funds and have broke into the homeowners insurance, D&O Insurance, and eventually will offer the owners insurance as well. Creating the true private utopia. From "Interesting huh" down is speculation but it all fits together.

I find it strange and sad that our government would allow the owner of 1st National to knowing get away with writting fraudulent sub prime loans. The FDIC annoucement states that it was the fraudulent sub prime lending that resulted in 1st National's high delinquencys and foreclosures that resulted in its failure.

Anyone in Florida I would urge you to get any funds out of any bank that is called "Community Banc" It is a CAI bank. Put it in a Credit Union where the governance is diffrent still insured but safe. Any Credit Union that will allow Businesses and anyone who works or lives etc. in the county to join is a Federal Credit Union. CU have to have reserves to cover delinquencies no matter how much in losses they have or how high thier delinquencies are. Banks don't have reserves they barely can cover the deposits for the day. They only have to have something like 10% of the total deposits. But Credit Unions aren't allowed to do that. Do the research. I promise Credit Unions are the safest bet you have. They also offer services that homeowners may be able to take advantage of. My HOA will not listen and if I would not do it with my own money I wouldn't recommend it. Bankrate.com isn't a source I would use solely because some of the advice I have read on there isn't sound advice. For those HOA Board members out there like me who honestly want is best for the community and protecting the association assets from everything and anyone, do the research and you will see I am right. Credit Unions. I don't work for a credit union either. I just know how to research and put the parts together. If your community comes first then you will too. Start with the FDIC then find where it says credit unions aren't insured by the fdic but are insured by another government agency and to that site. Then do a search for credit unions in the news and read everything. The good and the bad then you will find what I did.

Sorry if i misspelled any words. I'm a bit frustrated with the abreviated information privided by people these days. I'm not writting a text message this is to provide you with information. Everything went from summarized to abreviated to our loss of reading comprehension. To abreviated it. It made us stupid. Dumbing us down.

Drink more water. Floride kills and is added to the water. Its also a way to dumb us down. Ask your dentist. I did.