Mortgage origination is dominated by federally insured financial institutions, and 57 such banks have failed so far this year - more than double the level for all of last year.
On July 2 alone, seven federally insured institutions were seized. Six were in Illinois, controlled by just one family and operated under a model that concentrated exposure.
The closing of four institutions on Friday was projected to cost the FDIC's Deposit Insurance Fund $1.1 billion.
The Office of Thrift Supervision oversaw some of the biggest U.S. bank failures. Among failed institutions it previously supervised were BankUnited, IndyMac Bank and Washington Mutual Bank. The Obama administration is calling for the agency's dismantling.
The number of non-bank mortgage operations to close this year has reached 40. This group generally includes firms with at least 50 employees.
World Alliance Financial Corp., which operates the Senior Lending Network, said this month that funding was no longer available for reverse mortgages. The company warned it might wind down the business if it doesn't find a buyer or partner.
In June, Michigan regulators seized mortgage servicer Northwestern Financial Corp. for allegedly pocketing investors' payments and siphoning off escrow funds.
Also during June, Arizona regulators seized hard-money lender Landmarc Capital and Investment Co., which subsequently consented to permanent receivership.
