After Ocala raid, Taylor Bean & Whitaker suspended from FHA lending
One day after its office was raided by federal agents, Ocala-based Taylor, Bean & Whitaker Mortgage Corp. was suspended Tuesday by the Federal Housing Administration from making loans insured by the federal agency. The action knocks out one of the biggest FHA lenders at least temporarily, according to a report in the Wall Street Journal. Read more here.
The FHA said the Florida-based lender failed to submit a required annual financial report and to disclose to the FHA "certain irregular transactions that raised concerns of fraud." Taylor Bean has 30 days to appeal the suspension. Taylor Bean is a major national mortgage lender.
Taylor, Bean and Whitaker has had other troubles. In June, the company paid $9 million to settle with 14 states over questionable underwriting practices, the New York Times reported.
On Monday, Taylor, Bean's office was raided by federal agents simultaneously with a raid in Orlando of an office of Alabama-based Colonial Bank, part of Colonial Bancgroup. Struggling Colonial had earlier made a deal with Taylor, Bean to receive $300 million in new capital which, in turn, would have opened the door to a U.S. Treasury program to receive an additional $550 million. When the Taylor, Bean deal fell through late last week, it also killed immediate prospects for Colonial to receive the additional federal infusion of new money. The net effect is to put Colonial, which last week acknowledged its own prospects were in doubt, in greater financial jeopardy. Colonial operates nearly 200 offices in Florida and is the sixth largest bank in Florida based on deposits. Read more in my column here.
-- Robert Trigaux, Times Business Columnist