Home | Republic Bank (2024)

FAQs

What happens to my mortgage if First Republic fails? ›

Your mortgage will likely be sold to another financial institution. If so, the new owner must communicate this change to you within 30 days of the transfer date, according to the Consumer Financial Protection Bureau (CFPB).

All residential home mortgages and HELOCs are with Chase. Residential home mortgages and HELOCs, including those that were paid off and matured on or after June 30, 2021, were transferred to Chase on November 1, 2023.

A lender may occasionally ask for three months of bank statements, or a full quarter, to verify income and check on the status of your incoming money. However, two months' worth is often enough for them to dig into the financials and figure out whether you're capable of paying off the mortgage.

Red flags on bank statements for mortgage qualification include large unexplained deposits, frequent overdrafts, irregular transactions, excessive debt payments, undisclosed liabilities, and inconsistent income deposits, which prompt lenders to scrutinize the borrower's financial stability and may require further ...

Though the headlines may be concerning, if you have an account with First Republic Bank, your money is protected up to $250,000. Federal Republic is insured by the Federal Deposit Insurance Corporation, which secures your money for up to $250,000 per account holder, per bank, and is backed by the federal government.

Key takeaways

If a bank goes bankrupt, your loans will not be affected and your funds will be protected by the FDIC. If a lender collapses, your loan may be transferred to another institution, but you are still responsible for making payments.

Lenders typically look for 2 months of bank statements from potential borrowers, which provides enough data to assess your income consistency, spending habits, account balances and other crucial financial information. It's possible the lender may ask to see more bank statements for additional insights in process, too.

Banks can keep data for a very long time – PPI claims have been settled for debts that were repaid more than 15 years ago. So a lender may be able to tell if you defaulted on a debt, you went bankrupt or had an IVA, or you settled a debt with a partial settlement.

Underwriters will want to ensure you can affordably and reliably meet your mortgage repayments. Your bank statements will reflect your income, any regular outgoings and give a snapshot of your spending.

During the mortgage loan application process, lenders will usually want to see 2 to 3 months' worth of checking and savings account statements. They will review these statements to confirm your income and expense history and ensure you'll be able to make your mortgage payments.

What lenders do not check bank statements? ›

Some lenders including Santander, Halifax and Virgin Money have told borrowers that they do not want to see bank statements. Instead, they are relying on a borrower's credit score to assess affordability.

Most mortgage lenders will class your debt-to-income ratio as moderate, which means some of them might view your application with caution. Some lenders are much more strict than others when it comes to affordability and debt, so it's important for you to find a lender who's more lenient.

First Republic's failure was due to a run on deposits following the collapses of Silicon Valley Bank and Signature Bank. JPMorgan Chase acquired First Republic Bank on May 1, 2023. If you had insured or uninsured money in First Republic accounts, your funds are safe and now managed by JPMorgan Chase.

Chase will assume lease terms that existed between First Republic and Paramount. The remaining space, close to 117,000 square feet, will be surrendered to Paramount. The block of space "largely represented space that was not being utilized by First Republic," the landlord said in its SEC filing.

Federal insurance is typically limited to $250,000 in many cases. But for First Republic, “JPMorgan Chase is assuming all deposits — insured and uninsured,” according to the JPMorgan Chase press release.

The Role of the Federal Government

[vii] The FHA insures reverse mortgages both to protect lenders and borrowers. Borrowers are guaranteed their payments even if the lender undergoes financial difficulty.