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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.
With no FHA or conventional financing to offer, the company had no alternative but to close up shop. The management sent emails to everyone expressing their disappointment that a less drastic option was unavailable. Realize that we’re not talking about a small shop – TBW had over 2,000 employees.
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 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?
