GoToby Commentary Predicted Taylor Bean Mortgage Style Collapse
One of every seven of Taylor Bean & Whitaker Mortgage Corp. government-backed mortgages in Florida are at serious risk of failing. Company faces imminent bankruptcy.
Palm Coast, FL – August 14, 2009 – A December ’08 GoToby.com commentary Real Estate – the Fallacy of Government Oversight cited an excellent BusinessWeek piece entitled "FHA-Backed Loans: The New Subprime." It prophesied the problem loans that lead to the recent collapse of Taylor Bean & Whitaker which, at least in part, triggered today’s failure of Colonial Bank. Colonial funded many of Taylor Bean’s loans.
The Ocala Star-Banner reports today [story] that one in 7 of government-backed mortgages issued in Florida by Taylor Bean & Whitaker are at serious risk of failing according to HUD data. The company’s own lawyers say that bankruptcy is imminent. From the Star-Banner article:
"The HUD data also shows that, of Taylor Bean’s mortgages, 92 percent originated during the past two years, which made it the fastest-growing FHA underwriter….""Of the 15,714 mortgages Taylor Bean once held in Florida, more than 14 percent were three months delinquent, according to U.S. Department of Housing and Urban Development data. That percent is the highest for the 10 largest mortgage lenders doing Federal Housing Administration business in Florida and dwarfs a national FHA delinquency rate of 6.9 percent."
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