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After a long track record of providing solid mortgages through its brokerage network, Taylor Bean and Whitaker close its doors after a Federal Raid. The lender Ginnie Mae also terminated their mortgage backed securities wing due to the ordeal.
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.
Now pay attention that I put “raided” in quotes? This invokes the perception that the social media has with people like Elliot Ness chasing Al Capone. The federal search of TBW was warranted however, since they failed to submit a required financial report. This raised the “fraud” alarm when it was coupled with TBW neglect to disclose any records of irregular transactions.
The company was incorporated in 1982 as a small town retail mortgage firm. But in the past decade or so, TBW had grown substantially to become one of the top mortgage wholesalers in the country.
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?
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