Politics & Government

Rossmoor Seeks Info About Closed Bank

FDIC representatives are at Home Savings of America branch with details about the transition.

Worried customers of failed Home Savings of America on Monday walked up to the Tice Valley Boulevard branch, where representatives of the Federal Deposition Insurance Corp. were there with information about the transition. 

"I heard it this morning, very early, on the 5 a.m. news," said a Walnut Creek woman, who identified herself only as Pearl, on Monday. "I was hoping I was hearing wrong."

Pearl came down to the Home Savings of America branch at the Rossmoor Shopping Center around noontime, where she received some reassurances from FDIC staffers about her Social Security checks and some certificates of deposit.

"It eased my mind a bit," said Pearl, after speaking with Gerald Billings, a senior ombudsman specialist for FDIC, who was greeting curious bank customers at the door Monday. FDIC is the receiver of HSA. Billings said about 100 customers dropped by the branch Monday morning to get information.

The Social Security checks will be automatically deposited at US Bank, which has a branch at Rossmoor Shopping Center. FDIC negotiated with US Bank to pick up some automatic deposits from stranded Home Savings customers.

Home Savings of America is a small Minnesota bank that was "largely a mortgage operation," Billings said. Last Friday's closing affected branches in Walnut Creek, Seal Beach, Laguna Hills and Little Falls, Minn.

The FDIC is mailing depositors checks for the amount of their insured money. The checks were mailed Monday and residents should get them later in the week, Billings said. FDIC's website has some information for bank customers.

Outstanding checks are in jeopardy. The FDIC representatives distributed letters, which bank customers could reproduce, that state that the closed bank — not the customer — is at fault for bounced checks. The ATM stopped working for HSA customers as of 2:30 p.m. Friday, Billings said.

In the days and weeks leading up to the closing, FDIC tried unsuccessfully to find another financial institution to take over the banking operations of HSA, Billing said.

FDIC as receiver retains the assets of HSA for later disposition. Loan customers are asked to continue to make payments as usual. Customers with questions may call (800) 523-8089, including those who suspect scams from people who call saying they are acting on behalf of the failed bank, new bank or the FDIC, according to an FDIC handout.

The closing on Friday caused anxiety for many depositors, including those from the nearby Rossmoor retirement community, according to KCBS News.

Regulators on Friday closed Home Savings and another small bank in Georgia, bringing to 11 the number of bank failures this year, roughly half the number closed by the same date in 2011, according to the Huffington Post.


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