DALLAS, April 16, 2012 /PRNewswire/ -- Thanks to fewer bank failures, mortgage-related casualties fell. If the trend continues, this year's count could land under a hundred for the first time since 2006.
From Jan. 1 through March 31, Mortgage Daily tracked 27 mortgage-related business closings. Among the total were 16 FDIC-insured banks -- including some that weathered the Great Depression.
During the same period in 2011, there were 37 mortgage-related casualties.The improvement can be attributed to a decline in bank failures.
| Type |
Q1 2012 |
Q1 2011 |
| Nonbanks |
4 |
5 |
| Banks |
16 |
26 |
| Credit Unions |
7 |
6 |
| Total |
27 |
37 |
The revised casualty count fell to 136 last year from 206 during 2010.
Among the biggest first-quarter news was CitiMortgage's decision to stop accepting mortgage broker business. Also, the OCC seized Home Savings of America, which originated $3.5 billion in 2011 and operated 100 mortgage branches. Meanwhile, an investigation uncovered nine net branch businesses that have closed.But the biggest story was MetLife Home Loans' decision to exit the mortgage business entirely. The company originated $24 billion last year.
The former CFO of failed Taylor Bean and Whitaker became the eighth guilty executive in one of the biggest criminal cases to emerge from the real estate crisis.On the civil side, Thornburg Mortgage Inc.'s former CEO, CFO and chief accounting officer were sued by the SEC over allegations they covered up pending margin calls and hid losses as the former jumbo giant teetered on the brink of failure -- though the defendants say they did nothing wrong.
The FDIC filed a $104 million lawsuit against former executives and directors of Broadway Bank.PHH Corp. disclosed plans to reduce its correspondent business, though impacted employees are expected to be reassigned.
ClearPoint Funding defaulted on mortgage warehouse lines of credit, and parent Gleacher & Company stepped in to provide support.After the first quarter ended, ING advised broker and correspondent clients that it would close both channels, while Saxon Mortgage Services notified nearly 700 employees of impending layoffs as it sold servicing assets to Ocwen Financial Corp.
Complete details about mortgage-related businesses to fail or close are available at: http://www.MortgageDaily.com/MortgageGraveyard.asp?spcode=prMedia requests for full 2012 report [email protected]
About MortgageDaily.com
Founded in 1998, MortgageDaily.com is a leading online source of mortgage news and mortgage statistics for the mortgage industry.
CONTACT:
Holly Himelright
214.521.1300
[email protected]
SOURCE MortgageDaily.com
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