Question and Answer Guide
Home Federal Savings Bank, Detroit, MI
FDIC Call Center
Toll free number 1-866-782-1969
Hours of Operation – Eastern Time
Friday, November 6, 2009: Until 9:00 p.m.
Saturday, November 7, 2009: 9:00 a.m. – 6:00 p.m.
Sunday, November 8, 2009: Noon – 6:00 p.m.
Thereafter: 8:00 a.m. – 8:00 p.m.
On Friday, November 6, 2009, Home Federal Savings Bank, Detroit, MI, was closed by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, Liberty Bank and Trust Company, New Orleans, LA acquired all the deposits and assets of Home Federal Savings Bank from the FDIC as Receiver for Home Federal Savings Bank.
The total balance in your account(s) has been transferred to Liberty Bank and Trust Company and will be available for transactions during regular business hours at the former Home Federal Savings Bank branches.
You may continue to use your same checks, ATM cards and debit cards until notified.
All Direct Deposits, including Social Security checks, will continue as usual.
Account(s): What about my account with Home Federal Savings Bank?
If you had an account with Home Federal Savings Bank, you now have an account with Liberty Bank and Trust Company, New Orleans, LA. All deposit accounts, which include checking, savings, money market, CDs and retirement accounts, have been transferred to Liberty Bank and Trust Company, regardless of the dollar amount. No one lost any money on deposit in Home Federal Savings Bank.
Customers of both banks should continue to use their existing branches until Liberty Bank and Trust Company can fully integrate the deposit records of Home Federal Savings Bank.
To forewarn you of any scams, please be advised that you will not receive any e-mail notification from the FDIC, the Receiver, or Liberty Bank and Trust Company to claim/unlock/unsuspend your account or to provide any private information. Please be watchful for and resist any scams to obtain information from you by individuals or entities purporting to act on behalf of Home Federal Savings Bank or the FDIC.
Direct Deposits - Government Deposits: What will happen to my direct deposits?
Direct Deposits, including Social Security checks, will continue as normal.
Existing Deposits at Liberty Bank and Trust Company: I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250,000. Are all funds insured?
The accounts transferred to Liberty Bank and Trust Company will be separately insured for at least six months after the acquisition. This grace period gives a depositor the opportunity to restructure the accounts, if necessary.
CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.
CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.
If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.
Interest Rates, Early Withdrawal Penalty: Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
Interest on all deposits accrued through Friday, November 6, 2009, will be paid at your same rate. Liberty Bank and Trust Company will review rates and notify you if interest rates will change. Your interest rate may be reduced.
You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to or a withdrawal from your account.
Loans/mortgages: What about my loan or mortgage with Home Federal Savings Bank?
All mortgages and loans have been assumed by Liberty Bank and Trust Company. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Home Federal Savings Bank and send your payments to the same address.
Loans in Process: What happens if I had a loan in process that had not closed or a line of credit not fully funded?
You should contact your loan officer. All prior contacts remain the same.
Media: I represent a TV/Newspaper/Radio and would like some information.
Please contact the Office of Public Affairs:
Outstanding Checks: What about checks that I have written on my account with Home Federal Savings Bank?
Your checks will clear up to the available balance in your account. You can continue to use your existing checks.
Shareholders: What about my shares of stock?
Shareholders have a claim against the receivership; however, they have the lowest priority of claim. You should discuss this with an accountant and/or the IRS concerning the exact requirements necessary to recognize the investment as a loss for tax purposes. The FDIC does not require stockholders to file a claim with the Receiver. However, we recommend that you keep our office informed of any address change, should we need to contact you in the future.
Transaction Types: Why do all deposits, insured or not, pass in some transactions but not in others?
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result had been for the FDIC to transfer only the insured deposits in a Purchase and Assumption transaction; however, the temporary increase in the deposit insurance limit has assisted in the transfer of all deposits more often in the past year.
Unpaid Bills: I did some work for the bank and have not been paid. What should I do?
All claims against Home Federal Savings Bank, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
Federal Deposit Insurance Corporation
Receiver: Home Federal Savings Bank
1601 Bryan Street
Dallas, TX 75201
Attention: Claims Agent