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PRESS RELEASE
Mortgage Related Casualties Rise from 2009
DALLAS -- (July 13, 2010) During the first half of 2010, the number of mortgage-related firms to close or fail jumped by more than a quarter from the same time last year, according to the Mortgage Graveyard from MortgageDaily.com. The increase was driven by financial institution failures as the number of non-bank lenders to close has dwindled.
From Jan. 1 to June 30, MortgageDaily.com tracked 109 mortgage-related failures and closings. That was a 27 percent increase from the first-half 2009.
Type | Through 6/30/10 | Through 6/30/09 | Full-year 2009
Nonbanks | 12 | 38 | 69
Banks | 86 | 43 | 140
Credit Unions | 11 | 5 | 20
Total | 109 | 86 | 229
While bank and credit union failures have doubled when compared to the first half of last year, non-bank closings have fallen by more than two-thirds during the same period.
However, despite the rise in financial institution closings, the number of bank failures has recently eased. An analysis by MortgageDaily.com of bank failures and regulatory orders suggests this year's bank failures will end up between 175 and 200 -- indicating a significant drop between the first half and the second half.
Among the most recent notable bank closings was Broadway Bank, which was closed in April by the Illinois Department of Financial and Professional Regulation - Division of Banking. The failure of the Chicago-based bank is expected to cost the Federal Deposit Insurance Corp. nearly $400 million.
Universal Mortgage Corp. stopped doing business in April -- impacting around 100 employees. The Mequon, Wis.-based lender notified its mortgage broker customers on April 23 of plans to stop funding loans. A subsequent filing with the Wisconsin Department of Workforce Development indicated the company would close down entirely.
Not included in first-half closings was Wells Fargo Financial Inc. -- which this month announced plans to exit from mortgage originations in a move that will impact 3,800 employees. The subprime lending subsidiary of Wells Fargo & Co. said that it no longer makes economic sense to operate a branch network separate from the bank. The biggest impact will likely be in Des Moines, Iowa, where the lender is based.
Complete details about all failed companies are available at:
http://www.MortgageDaily.com/
About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a dominant online source of mortgage news for the mortgage industry. Around 1 million news pages are viewed monthly at MortgageDaily.com and affiliated publications. www.MortgageDaily.com.
CONTACT:
SamGarcia@MortgageDaily.com
3811-700 Turtle Creek Blvd.
Dallas, TX 75219
Source: MortgageDaily.com
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