Taylor, Bean and Whitaker Mortgage Corp. has lost its Freddie Mac approval and halted all operations. The company hopes a business restructuring will remedy its situation.
The action follows Taylor Bean’s suspension yesterday by the Federal Housing Administration and the Government National Mortgage Association — or Ginnie Mae.
The Ocala, Fla.-based firm issued a bulletin today to its third-party customers that it was also “terminated and/or suspended” as a seller-servicer of Freddie.
“Taylor, Bean and Whitaker has unsuccessfully sought to have the termination/suspension decisions of each of those agencies reversed,” the bulletin stated. “As a result of these actions, Taylor, Bean and Whitaker must cease all originations operations effective immediately.”
The wholesale lender said it will not be able to close or fund any loans currently in the pipeline. It is cooperating with each of the agencies and “expects to service mortgage loans as it restructures its business in the wake of these events.”
Taylor Bean added that it is “very disappointed that a less drastic option is unavailable.”
Fitch Ratings downgraded Taylor Bean’s primary servicer ratings for prime and Alt-A product to RPS5 from RPS3+ RWN.
Related:
FHAÂ Suspends Taylor Bean
Taylor, Bean and Whitaker Mortgage Corp. lost its FHA approval, while its Ginnie Mae servicing portfolio was seized. The company allegedly hid the fact that its own auditor uncovered potential mortgage fraud on government-insured loans and failed to disclose two state investigations during the past year.
