UPDATE:
The mortgage industry was stunned with terrible news on Wednesday, August 5th. Taylor Bean and Whitaker, the 3rd largest FHA lender in the nation (only behind Bank of America and Wells Fargo) was suddenly closed.
When most large lenders closed or exited out of the wholesale mortgage industry these last few years, most did a pretty good job of leaving “graciously” allowing existing loans to close. Not this time. On Monday, I had two clients sign their loans with Taylor Bean and Whitaker with a third having loan docs waiting for them at escrow. None of the 3 transactions will close as well as the other thousands of loans with Taylor Bean and Whitaker across the country.
Taylor Bean and Whitaker still exists as a mortgage servicer and servicing will eventually land in Bank of America’s control.
Here is an excerpt to a local article regarding the closing:
Taylor Bean, the country’s third-largest FHA lender, was arguably the biggest player in the mortgage industry you’ve never heard of.
That obscurity was shattered in a painful way this week after federal authorities raided the company, forced it to stop making FHA loans and confirmed that its leaders were under investigation for fraud.
On Wednesday afternoon, the company suddenly closed its Ocala headquarters, putting up to 1,000 employees out of work, and pulled the plug on its national network.
I feel for the thousands of homeowners who were relying on Taylor Bean’s financing to acquire a home and the employees of the company.
Many buyers right now are first time home buyers hoping to take advantage of the $8,000 federal tax credit. Some set to close may lose their home, causing some to sign new leases and losing the chance of a once-in-a-lifetime oppurtunity to buy a house with low prices, low rates and federal tax incentives.
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