Over 300 Mortgage-Related Failures
DALLAS -- (Jan. 12) /PRNewswire/ The number of non-bank mortgage companies to close eased last year, but bank and credit union failures soared, according to data tracked at the Mortgage Graveyard, a journal of failed, ailing and acquired lenders. More than 300 mortgage-related companies have shut down since the credit crisis emerged in 2006.
During 2008, 116 mortgage bankers and financial institutions were closed down, according to the Mortgage Graveyard, which is maintained based on data reported at http://www.MortgageDaily.com. Failures, which generally involve companies with at least 50 employees, fell from a revised 160 tracked for the prior year.
Including two operations that wound down this year, the Mortgage Graveyard has tracked 305 mortgage-related firms that have ended independent operations since the beginning of the credit crisis in 2006.
"We've seen the capital crisis shift to financial institutions from unconventional mortgage bankers and non-agency securities," said MortgageDaily.com Publisher Sam Garcia. "But TARP investments, Fed MBS purchases and the potential re-capitalization of ResCap point toward a strong first quarter for the mortgage sector."
In 2008, 25 FDIC-insured institutions failed -- soaring from just three during all of 2007. Among last year's most significant bank failures were Downey Savings and Loan Association, F.A., IndyMac Bank F.S.B. and Washington Mutual Bank -- the biggest bank failure in U.S. history.
Credit union failures totaled 14 last year, based on data from the National Credit Union Administration. Only seven credit unions were closed in 2007.
The biggest nonbank failures last year involved Fannie Mae and Freddie Mac. Other notable 2008 closings included the wholesale division of Accredited Home Lenders Inc., which was one of the few lenders to survive the subprime meltdown; Carteret Mortgage Corp., which had employed around 1,700 people in 2007; and E-LOAN Inc., which had been an online lending pioneer.
A complete report of all failed companies is available at:
Founded in 1998, MortgageDaily.com is a dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliated publications.
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