Merchants Bank sees 50% drop in income, cites mortgagefraud
Merchants Bank of Indiana, a go-to lender for multifamily dealmakers across the U.S., cited commercial mortgage fraud for its poor second-quarter earnings. The Carmel, Indiana-based regional bank reported a 50 percent drop in net income to $38 million in the second quarter on Monday after its provision for credit losses jumped 432 percent. It blamed the increase in credit losses on a decline in multifamily values, along with an active investigation of borrowers into mortgage fraud or suspected fraud. “We have implemented strategies to address our asset quality issues and to enhance our overall risk management practices to ensure long-term […] This article originally appeared on The Real Deal. Click here to read the full story.
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