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Taylor, Bean and Whitaker closed its doors today, after a federal summons to cease and desist any new FHA loans originating from the company. Ginnie Mae also terminated its companies ability to issue mortgage backed securities. This comes as a blow since both companies have been providing mortgages through its mortgage broker network for years.
Without the FHA or an alternative financing offer, the only company only option was the close their doors. The executive staff contacted the entire company conveying their dismay that another option was unavailable. Now understand we’re not talking about a small potato; Taylor Bean and Whitaker had over 2,000 employees at this time.
TBW was raided by the Federal Government on August 3rd, 2009 in Ocala, Florida.
Observe that I put “raided” in quotes? This extends from a media term invoking thoughts of Al Capone being chased by Elliot Ness. But in all actuality, this search was warranted. Taylor, Bean and Whitaker had failed to submit required financial reports which raised the red flag. It was also stated that TBW failed to disclose irregular transactions, further raising the alert of Fraud.
The company incorporated in Ocala, FL back in 1982. At the time, it was just a small town mortgage firm. But through the years, it had grown into one of the largest mortgage wholesalers in the country. A wholesaler generally obtains most of their mew mortgages from retail mortgage brokerage shops.
What this closure means is another stake in the heart of the mortgage brokerage industry. Look - I’m not saying that Taylor Bean was completely above reproach - I personally have never had any direct dealings with the firm. But through my many years in this industry, I had never heard a disparaging remark about them. As far as I know, this company was one of the better mortgage lenders out there. And now they are gone. And now there is one less competitor, one less company for a broker to choose from.
Where is the mortgage industry headed? Well, we are pretty much there already. Mortgage borrowers can choose from Government loans or from a small sprinkling of small local lenders that still portfolio their own loans. Just try to find a broker these days - there are less and less every day. I hope you can see that YOUR CHOICES ARE BEING ELIMINATED! Now you may choose a fixed rate - oh, you can choose 30 or 20 or even 15 years or one of a couple of adjustable programs left - 5, 7 or 10 year fixed rate products that convert to floating rates after the fixed rate portion ends. That’s about it! And this is good for consumers?
