Archived reporting from 2008, updated October 12, 2025 for continuity.
In 2008, a wave of mortgage lenders and financial institutions collapsed under the weight of subprime losses and credit crunch pressures. This page preserves our original reporting on the companies that failed and the factors that led to their demise.
## What led to the failures?
The housing bubble burst in 2007, causing home values to plummet. Lenders that had issued high-risk mortgages suddenly faced massive defaults. Funding dried up, credit markets froze, and confidence in mortgage-backed securities evaporated.
## Which institutions failed?
Notable casualties included IndyMac, Washington Mutual, and Lehman Brothers, among dozens of regional banks and lenders. We documented each failure as it happened, noting the size of the institution and the impact on consumers and investors.
## Lessons learned
The mortgage crisis demonstrated the importance of underwriting standards, transparent securitization, and regulatory oversight. In the years since, lenders have tightened credit and regulators have implemented reforms to safeguard the housing finance system.
For more information on how the mortgage industry evolved after the crisis, see our [Mortgage Graveyard hub](/mortgage-graveyard/).
