Tweet
Mortgage broker Taylor Bean closes!!!
Taylor Bean & Whitaker Mortgage Corp. shut down Wednesday, two days after its offices were raided by federal agents.
The Ocala, Fla.-based lender, which hoped to infuse Colonial BancGroup Inc. with $300 million before the deal went sour, closed its doors today after it failed to reverse the Federal Housing Administration’s orders to cease making FHA-backed loans, according to a written statement.
“Regrettably, TBW will not be able to close or fund any mortgage loans currently pending in its pipeline,” the statement said. “TBW is cooperating with each of the agencies with respect to its servicing operations and expects to continue to service mortgage loans as it restructures its business in the wake if these events.”
According to the Wall Street Journal’s report on Tuesday, Taylor Bean failed to submit a required annual financial report and to disclose to the FHA “certain irregular transactions that raised concerns of fraud.”
Two days ago, Florida offices of both Taylor Bean and Colonial were raided by federal agents, which executed search warrants ordered by the Special Inspector General for the bank bailout program known as TARP.
The two offices, which included Colonial’s Mortgage Warehouse Lending Division in Orlando, worked closely together on a deal to prop up the bank with $300 million in capital in order for it to receive $550 million from TARP. Colonial's office is still open.
However, plans fell through last week because bank regulators did not approve the transaction before the planned close date of July 31. Without the capital, Colonial said its survival is “doubtful,” according to its recent earnings report.
http://www.bizjournals.com/orlando/othercities/birmingham/stories/2009/08/03/daily31.html
Taylor, Bean & Whitaker Mortgage Corp., the Ocala mortgage broker that abandoned an effort to rescue Colonial Bancgroup Inc. last week, ceased processing mortgages Wednesday, a day after the Federal Housing Administration and Ginnie Mae suspended doing business with the company.
The company said it would cease processing and closing mortgage loans after it unsuccessfully sought reversal of the federal agencies’ decision, according to a statement released Wednesday.
According to the Wall Street Journal, Taylor Bean was the nation’s third largest underwriter of FHA loans in the country.
Taylor Bean, leading a consortium of mortgage brokers that included two Orlando companies, offered to invest $300 million in Colonial Bank in exchange for a 75 percent equity stake. Colonial needed the money to qualify for $530 million in federal bailout funds. But the bank announced last week that the deal fell through.
Federal law enforcement agents raided a Colonial office in downtown Orlando and Taylor Bean’s headquarters Monday carting off records.
Montgomery, Ala.-based Colonial Bancgroup is the parent of Colonial Bank, Central Florida’s fourth largest lender. It lost $606 million during the quarter ended June 30, largely the result of loan failures. It had $1.7 billion in non-performing assets.
Taylor Bean & Whitaker Mortgage Corp. shut down Wednesday, two days after its offices were raided by federal agents.
The Ocala, Fla.-based lender, which hoped to infuse Colonial BancGroup Inc. with $300 million before the deal went sour, closed its doors today after it failed to reverse the Federal Housing Administration’s orders to cease making FHA-backed loans, according to a written statement.
“Regrettably, TBW will not be able to close or fund any mortgage loans currently pending in its pipeline,” the statement said. “TBW is cooperating with each of the agencies with respect to its servicing operations and expects to continue to service mortgage loans as it restructures its business in the wake if these events.”
According to the Wall Street Journal’s report on Tuesday, Taylor Bean failed to submit a required annual financial report and to disclose to the FHA “certain irregular transactions that raised concerns of fraud.”
Two days ago, Florida offices of both Taylor Bean and Colonial were raided by federal agents, which executed search warrants ordered by the Special Inspector General for the bank bailout program known as TARP.
The two offices, which included Colonial’s Mortgage Warehouse Lending Division in Orlando, worked closely together on a deal to prop up the bank with $300 million in capital in order for it to receive $550 million from TARP. Colonial's office is still open.
However, plans fell through last week because bank regulators did not approve the transaction before the planned close date of July 31. Without the capital, Colonial said its survival is “doubtful,” according to its recent earnings report.
http://www.bizjournals.com/orlando/othercities/birmingham/stories/2009/08/03/daily31.html
Taylor, Bean & Whitaker Mortgage Corp., the Ocala mortgage broker that abandoned an effort to rescue Colonial Bancgroup Inc. last week, ceased processing mortgages Wednesday, a day after the Federal Housing Administration and Ginnie Mae suspended doing business with the company.
The company said it would cease processing and closing mortgage loans after it unsuccessfully sought reversal of the federal agencies’ decision, according to a statement released Wednesday.
According to the Wall Street Journal, Taylor Bean was the nation’s third largest underwriter of FHA loans in the country.
Taylor Bean, leading a consortium of mortgage brokers that included two Orlando companies, offered to invest $300 million in Colonial Bank in exchange for a 75 percent equity stake. Colonial needed the money to qualify for $530 million in federal bailout funds. But the bank announced last week that the deal fell through.
Federal law enforcement agents raided a Colonial office in downtown Orlando and Taylor Bean’s headquarters Monday carting off records.
Montgomery, Ala.-based Colonial Bancgroup is the parent of Colonial Bank, Central Florida’s fourth largest lender. It lost $606 million during the quarter ended June 30, largely the result of loan failures. It had $1.7 billion in non-performing assets.