Taylor, Bean & Whitaker Gets The Smackdown

WASHINGTON – The Federal Housing Administration (FHA) today suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Florida, thereby preventing the Company from originating and underwriting new FHA-insured mortgages. The Government National Mortgage Association (Ginnie Mae) is also defaulting and terminating TBW as an issuer in its Mortgage-Backed Securities (MBS) program and is ending TBW’s ability to continue to service Ginnie Mae securities. This means that, effective immediately, TBW will not be able to issue Ginnie Mae securities, and Ginnie Mae will take control of TBW’s nearly $25 billion Ginnie Mae portfolio.

FHA and Ginnie Mae are imposing these actions because TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud. FHA’s suspension is also based on TBW’s failure to disclose, and its false certifications concealing, that it was the subject of two examinations into its business practices in the past year.

So why is this important?  Well, if you’re a buyer currently working with TBW, they’re not going to be able to fund your loan.  If they can’t fund your loan, you need to find another alternative – and quick.

If your loan is in process with Taylor, Bean & Whitaker then contact your agent immediately and let them know you want to find a new loan, and fast.  If you need help, or further direction, please don’t hesitate to email me.

Read more at WSJ, and the HUD website.

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