|
|
Allegations of mortgage fraud on nontraditional loans have led to a $9 million settlement with 13 states by Taylor, Bean & Whitaker Mortgage Corp. As part of the agreement, the company will implement a federal modification program.
The Ocala, Fla.-based lender has agreed to pay $9 million in fines as part of a settlement with 13 states, Pennsylvania’s Department of Banking announced today. The funds will be utilized by the states to regulate mortgage activity — with half going towards ongoing development and maintenance of the Nationwide Mortgage Licensing System. The other states participating in the settlement are Arizona, Florida, Georgia, Idaho, Illinois, Louisiana, Maryland, Massachusetts, Mississippi, New Jersey, North Carolina, Vermont and Washington, D.C. In addition, Taylor Bean agreed to implement a loan modification program similar to the Making Home Affordable program on loans it owns, the statement said. It will also seek investor approval for modifications on loans it doesn’t own. Modification prospects will be contacted by Taylor Bean. Pennsylvania said a multi-state examination of the nontraditional lender in 2006 “uncovered numerous instances in which applicants’ incomes and assets were altered in order to gain loan approvals.” Taylor Bean reportedly halted the unsavory practices and ended its nontraditional programs in 2007. An independent firm will be hired to review nontraditional originations from 2006 and 2007 and determine whether additional borrower reimbursement is warranted. In addition, a compliance program approved by the state will be implemented. The company is one of the 10 biggest wholesale lenders in the country, with 215,880 traditional and nontraditional mortgages originated between 2006 and 2007, Pennsylvania said. Taylor Bean didn’t immediately respond to a request for a statement. |
|