Federal Probe Blocks Major Florida Mortgage Lender

Ocala-based Taylor, Bean & Whitaker Mortgage Corp.’s offices were raided by federal agents Monday. The company has been barred from making federally insured loans.

Palm Coast, FL – August 7, 2009 – The third largest originator of FHA insured mortgages has been shut down. In a statement sent to mortgage brokers and regulators, Ocala-based Taylor, Bean & Whitaker announced that it was suspending mortgage-lending operations. Federal agencies had suspended the company from selling and servicing loans by the Department of Housing and Urban Development, Freddie Mac and Ginnie Mae.
The company’s headquarters were raided by federal agents Monday as was the Orlando office of Colonial BancGroup. "TBW will not be able to close or fund any mortgage loans currently pending in its pipeline," the statement says.
TBW was one of the largest providers of FHA loans in Florida and third largest in the country. It ranks as the 12th largest loan originator in the country over the first half of this year. Its departure from the market is expected to deal a blow to Florida’s housing market recovery.
The lender failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor. The auditor discovered irregular transactions that raised concerns of fraud according to the FHA.

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2 replies
  1. John Boy
    John Boy says:

    Mortgage Probe

    Hopefully we will see a good number of people doing hard jail time. This should include not only people from this company but should also include Appraisers, Real Estate Brokers and anyone else who was Feeding" clients to this company. All too often the agents and appraiser getkickback, favors and treats from the mortgage originators, underighters and others who where making money off the clients and the government.

  2. Herb Whitaker
    Herb Whitaker says:

    Are your sure John Boy?

    Can you give any specific examples to substantiate your statements, or is this just something you have heard and believe to be true? If you are accurate I agree that inquiries and punishment are in order, but to broad brush is pretty inaccurate. Give some examples of this if you have any>

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