Bay National's investor loans
The Baltimore bank says it's "operating under formal oversight by federal regulators as it tries to recover from losses on bad mortgage loans," Andrea Walker reports today. Here's why:
Bank executives said its problems stem from the collapse of the real estate market. Most of the losses came on loans given to investors who were purchasing homes, many around the Inner Harbor, and renovating them to sell. Many of the investors weren't able to sell the houses as values dropped.