Taylor, Bean and Whitaker -12th largest mortgage lender loses FHA approval.

*** Update – TB&W has closed down mortgage operations!!

Taylor, Bean and Whitaker -12th largest mortgage lender loses FHA approval.

Taylor, Bean, and Whitaker was one the country’s top wholesale lenders serving 100’s of small mortgage shops across the country.

TB&W has 30 days to appeal the suspension but few have won an appeal and the blow will make it almost impossible for the company to fully recover as a major player.

At the core of the move was some reporting irregularities.

FHA Commissioner David Stevens said, “TBW failed to provide FHA with financial records that help us to protect the integrity of our insurance fund and our ability to continue a 75-year track record of promoting, preserving and protecting the American Dream. We were also troubled that the Company not only failed to disclose it was a target of a multi-state examination and a separate action by the Commonwealth of Kentucky, but then falsely certified that it had not been sanctioned by any state. FHA won’t tolerate irresponsible lending practices.”

although many would like to think that the mortgage crash was only related to the sub prime world this action show that it was more than sub prime and that the problems are not over like any would like us to believe.

“Today, we suspend one company but there is a very clear message that should be heard throughout the FHA lending world – operate within our standards or we won’t do business with you,” said HUD Secretary Shaun Donovan.

If you are working for an FHA lender or broker pay attention to the little things.

Is your company making loans that other will not make?

Are you seeing lax disclosure policies and followup?

This story started earlier today with the Feds serving TB&W and Colonial Bank with warrants.

See story.

Also see the official press release from HUD
http://www.hud.gov/news/release.cfm?content=pr09-145.cfm&CFID=19550507&CFTOKEN=91094375

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