When a lender fails, the courts assign a trustee to manage the company until it can be liquidated.
The assets are divided equally among the creditors. In other words, all the mortgages will be distributed equally to the partys that loaned the money to the lender.
You should continue to make your payments to the present lender until you receive a notice from the trustee or the new lender to send payments to a new address. Your payments will be put in a trust account by the trustee and forwarded to the new lender.
If you fail to continue making your mortgage payments to the current lender (trustee), the new lender can declare your loan in default and foreclose.
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