I had a client asking me what happens when a bank fails, and you have a loan with them.
If your bank fails, you still owe whatever outstanding loan balances you have. You’ll simply continue to make your loan payments to a new bank or FDIC-run intermediary.
This had happened to me, my home mortgage was with Washington Mutual, they failed and the and my loan was transferred to Chase. It was a fairly smooth transition, one month the payment was from WaMu the next it was Chase. All that changed was the mailing address.
But I did have to contact Chase to release the lien, after the final payment had been made.