Well…again I feel a bit like the barn door was closed after the cows got out…but Florida Company Taylor, Bean and Whitaker Mortgage Corp. (TBW) was CUT off today. From what you may ask?? From originating and underwriting new FHA-insured mortgages! If you have not been paying attention…FHA loans comprise a HUGE part of all loans in today’s market.
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.”
TBW is the third largest direct endorsement lender of FHA-insured loans. Did they go after them because they are the BIG FISH…to make a statement? Will others follow? I really can’t imagine that they are the only company with “issues”.
I feel bad for the buyers out there who have their deals in the pipeline and will now likely have to start over with the loan process.
We have not heard the last of this for sure.