With an FHA rescue out of the picture and additional financing unavailable, the companies only other option was to close its doors. Management contacted the employees conveying their disappointment and explaining that another option was unavailable. Now recognize that Taylor, Bean and Whitaker was not a tiny company. At the time of the closure, they employed almost 2,000 people.
The Federal Government “raided” the company headquarters on August 3, 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 is 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.
What comes to the next evolution of the mortgage industry? Well, pay attention because we’re already pulling back the veil. Mortgage borrowers can choose from a Governmental Lender Service or from the remnants of the once powerful brokerage networks. But Who’s LEFT!? Only a few small Local Lenders that still portfolio their own Loans. I hope you can see that your choices are being eliminated since it becomes harder and harder each day to find a broker. 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. Is that what you call choice? Well that’s all that’s left! And you call this good for business.
Article submitted by: 911 Foreclosure - Loan Modification Advice