Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

Bank, Credit Union Failures Rise


Bank, Credit Union Failures Rise

DALLAS — (July 22, 2013) /PRNewswire/ Thanks to a jump in bank failures and a continued worsening trend in the credit union sector, quarterly mortgage-related casualties rose to the highest level in a year. The forecast is for a decline in bank failures and an increase in credit union and non-bank closings.

There were 35 mortgage-related casualties in the first-half 2013, according to The Mortgage Graveyard from Mortgage Daily.

The second-quarter portion of the total was 20, more than the 15 tracked in the first quarter and the worst quarter of the past four.

However, the industry lost fewer businesses than the 25 reported for the second-quarter 2012.

Non-bank closings accounted for just two of the latest quarter’s casualties, down four from the first quarter.

But bank failures jumped to 12 from four in the prior period.

Credit union casualties rose for the fourth consecutive quarter to six.

Q2 2013
Q1 2013
Q2 2012
Non-Bank Closings 2 6 9
Bank Failures (FDIC) 12 4 15
Credit Union Failures 6 5 1
Total 20 15 25

With 30-year fixed mortgage rates hovering more than a hundred basis points above the all-time low of 3.31% reached in the week ended Nov. 21, 2012, and potentially climbing higher — some non-bank lenders that have relied primarily on refinances could be forced out of business.

If credit union casualties — which have risen each quarter since the second-quarter 2012, when there was just one — continue on their current trajectory, even more can be expected this quarter.

But although bank failures surged in the latest quarter, the pace has recently slowed, with the last bank failure — Mountain National Bank in Sevierville, Tenn. — having occurred a month-and-a-half ago. The recent slowing suggests fewer bank failures in the third quarter.

Full Report:

Historical Annual Mortgage Graveyard statistics:

Media requests for full report should be directed to [email protected].

About Mortgage Daily

Founded in 1998 by 20-year mortgage industry veteran Sam Garcia, Mortgage Daily is a leading online source of mortgage news and mortgage statistics for the mortgage industry. Other proprietary Mortgage Daily reports include the Mortgage Litigation Index, Mortgage Fraud Index and Mortgage Employment Index as well as the weekly Mortgage Market Index. Visit Mortgage Daily at


Holly Himelright

[email protected]

Source: Mortgage Daily

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...