Fight With Mortgage Servicer Complicated The Rough Times For Central Florida S&L

In Central Florida, the Orlando Sentinel reports:

• It's not a stretch to say that these have been the worst of times for Federal Trust Bank. The Sanford-based savings and loan -- and the only publicly traded financial institution headquartered in Metro Orlando -- is grappling with a litany of troubles triggered by the housing and mortgage crisis. Of course, it is not alone. From Citigroup to SunTrust, most major financial institutions have fallen prey to the peculiar boom-and-bust losses of the subprime mortgage meltdown and its resulting investment fallout. But it is still rare for a community bank or thrift to take the kind of hits Federal Trust has taken.

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• Complicating matters last year, Federal Trust became ensnared in a messy lawsuit against its loan servicer Transland Financial Services Inc., which allegedly misappropriated more than $2 million in loan payments. Federal Trust was one of a trio of creditor banks that sued Maitland-based Transland last summer in an attempt to force it into bankruptcy and recover about $22 million in unpaid mortgage proceeds. The creditors later settled on a repayment plan with Transland.

From: Federal Trust is looking for turnaround.

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