More than twice as many federally insured banks have failed this year - 42 - compared to 21 that went belly up by this time last year, according to MortgageDaily.com.
Mortgage-related closings totalled 55 from Jan. 1 through April 9, including non-bank lenders, banks, and credit unions. At the same time last year, 50 closings had been tracked.
Notable intitutions include Florida Community Bank, with losses projected at $353 million; Appalachian Community Bank, which the FDIC expects will lose $419 million; and Horizon Bank, projected to lose $539 million.
We saw regulatory actions against U.S. financial institutions nearly double between the first-quarter 2009 and this year, suggesting the acceleration in bank failures is unlikely to abate, said MortgageDaily.com publisher Sam Garcia. However, a thawing of the market for mortgage-related assets could help move some institutions out of the 'troubled' category.