Banking Expert

Banking/Lending Expert – Ray David, Jr,
President, POINTBank

As president of POINTBank, Mr. David plans, develops and directs all financial policies and practices of the bank. He brings with him a strong foundation of experience, including his time serving POINTBank as Senior Lending Officer, Regional President, and ten years as a practicing forensic accounting expert.  Born and raised in Denton County, David holds a degree in Accounting from the University of North Texas, he is a Certified Public Accountant (CPA),  and is a graduate from the Graduate School of Banking in Colorado.

Q.  Should I be concerned about FDIC coverage?

 Q.  Do you have any recommendations for anyone who has an investment property that is “underwater”, other than holding onto it and riding this real estate downturn out?

A.  You can go about disposing of an “underwater” property a couple ways. First,  if you are working with a local bank who still has your note, start there, sell the property, and substitute other collateral for the deficiency.    

Or, pursue other means of borrowing for the deficiency with other collateral. You may be able to use real collateral such as a car or equipment, and then pay the note off at the original bank.  If your bank sold your note, before calling the new institution, you will want to speak with your personal contact and ask them how the new institution is working with customers in your situation.  They may have insight that will help in your approach.

Most importantly, talk openly with your financial institution. They should  want to work with you and in this scenario, may even lend you the difference unsecured.  Don’t be surprised, however if they do require some type of collateral as a means to substantiate the note because it affects ratings on their loans, which affects the ratings of the bank.

 A.  Every time we enter into an economic climate such as we are in now, government does create more strict guidelines for how a borrower can qualify, and for the bank lending limits. However, banks are still very interested in lending money. A big problem is that this economy has driven down consumer confidence about being able to pay a loan back.  This, more than anything, affects how many loans are being written right now.  Actually, the lower demand right now can make banks more flush and they may even offer better terms if you qualify.  There is no better time than now to visit with your personal banker about a loan.

Q.  Should I be concerned about FDIC coverage?

A.  Currently, you have unlimited FDIC insurance on all non-interest bearing accounts. In addition, there are ways to set up your interest bearing accounts where a couple can have FDIC insurance for up to 1 million dollars in deposits. You just need to visit with your personal banker for assistance. Since the start of FDIC insurance on January 1, 1934, no depositor has lost any insured funds as a result of a failure. Furthermore, when a bank fails it is typically purchased by another bank. During this transition, your access to your funds will be limited, but you only lose some interest. While there is no guarantee, this has been the historical precedence.

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POINTBank – Flower Mound
4920 Long Prairie Rd.
Flower Mound, TX 75028

972.434.3237

*Legal: Comments provided by Ray David Jr., and POINTBank , are not intended to be legal advice or tax advice.  Check with your attorney or tax advisor for specific information.

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