Florida Banks, Miami Real Estate

Banks Hit Hard by Florida Real Estate Downturn

The Florida housing downturn continues to squash bankers: Overdue loans, mostly Miami real estate related, have nearly quadrupled the past year in the Sunshine State.

Not only that, but the state's lenders have unusually low cash reserves to protect them against mortgage defaults. The first three months of this year, 41% of Florida-chartered banks were unprofitable, twice the number of banks that bled red ink last year.

The reports released over the last week by the Federal Deposit Insurance Corporation are responsible for these not-so-encouraging development statistics. A chain reaction provoked by a two-year plunge in real estate values is to blame experts say. It's not just problem home mortgages, but also developers defaulting on loans used to buy land and finance condo towers.

Full Article...Florida Banks, Miami Beach Real Estate