When First Regional Bank closed their doors this year with expected losses of $826 million followed by Community Bank and Trust, which the FDIC expects to lose $828 million, it was a sign of things to come.
More than twice the number of federally insured banks have failed during 2010 as compared to the same point in 2009. From January 1 through April 9, 55 mortgage-related closings have been tracked by MortgageDaily.com
. At about the same point last year, 50 closings had been tracked.
Some of the most notable bank failures include Florida Community Bank, with projected losses at $353 million, Appalachian Community Bank, expected to lose $419 million for the FDIC, and Horizon Bank with the Deposit Insurance Fund costs are estimated at $539 million.
There is some good news coming from Mortgage Daily: non-bank mortgage operations seem to have evened out. In the first few months of 2009 those operations had 25 failures and a total of 69 for the full year. From January 1 to April 12, 2010, only seven non-bank mortgage companies have failed.
"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 Founder and Publisher Sam Garcia. "However, a thawing of the market for mortgage-related assets could help move some institutions out of the 'troubled' category."