DALLAS (7/12/12)--The number of mortgage-related businesses to fail or close down during the first half of 2012 has declined by more than a quarter from the same point in 2011, while fewer credit unions and banks are failing, despite an increase in departures of mortgage bankers.
During the second quarter, the failure of 25 mortgage-related entities was tracked in the Mortgage Graveyard from Mortgage Daily
Failures of the entities eased from the first quarter's 27. The decline was even more significant when compared with the 37 tracked in the second quarter 2011.
Compared with the first half of last year, the first-half 2012 total was down 30% because of a one-half reduction in the number of credit unions failures and more than one-third decline in bank failures.
Failures among types financial institutions this year and last year are:
- Credit unions: Eight (first half 2012) vs. 16 (first half 2011);
- Banks: 31 (first half 2012) vs. 48 (first half 2011); and
- Nonbanks: 13 (first half 2012) vs. 10 (first half 2011).
Mortgage bankers that have shuttered their doors increased 30%.
During the three months ended May 31, the Federal Deposit Insurance Corp. and the Comptroller of the Currency issued a combined 246 regulatory orders against banks, climbing from 221 orders issued in the three months ended Feb. 29. The increase suggests that the third quarter could see an uptick in bank failures, Mortgage Daily