Latest on the Suspension of Taylor, Bean & Whitaker

Last week the US Department of Housing and Urban Development (HUD) suspended Taylor, Bean & Whitaker preventing the company from originating and underwriting FHA-insured mortgages. Additionally, Ginnie Mae defaulted and took over TBW’s mortgage backed securities program. Finally, TBW’s wholly owned appraisal management company was shut down.

FHA said “FHA and Ginnie Mae are imposing these actions because TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud.

FHA has released a series of FAQs for consumers and industry partners. Ginnie Mae created this document for consumers concerned about their loans with TBW.

According to a report by the Appraisal Institute TBW “was the 12th largest U.S. mortgage lender in the first six months of 2009, and the third largest lender of FHA loans in June. FHA agents raided its office along with the Florida offices of Colonial BancGroup Inc., for which Taylor Bean had depended on for short-term “warehouse” loans. Federal agents executed the raids after negotiations of a proposed deal that would have given Taylor Bean control over Colonial — which would then qualify the struggling bank for $536 million in federal bailout funds — collapsed.

  1. Bill Abalos

    There will be others who will go down as well. The real criminals are the big players who are still around and will soon fall as this company just did. They were good at pointing the finger at others while theirs were not only dirty, but stinky as well. I feel for my apprasial bretheren who will not be paid for any outstanding invoices. I may be a fallen appraiser, but at least I get the pleasure of watching these thugs exposed for the crooks they are. What goes around, comes around.

  2. Unfortunately the real story for appraisers is with Security One Valuation Services LLC. Who was/is owned by TBW in partnership with Todd Barfield. My company did several appraisals for SOVS we were finally paid for these appraisals a couple of weeks ago, the checks were deposited as usual. And then returned by Platinum Bank because the bank was taken over by FDIC. Appearantly I did not run to the bank fast enough for my deposit. In addition the SOVS funds are being held because of the relationship with TBW which is preventing several thousand checks from being reissued to the appraisers whose checks were returned by Platinum.
    The real story is how I would have NEVER done business with SOVS if it wasn’tfor the HVCC. The real story is that the HVCC doesnt have regulations built into it for licensing or provisions for the appraisal fees, it doensnt mandate the appraisers are paid fairly for the services provided, it does not penalize AMC’s when they dont pay and it doesnt require a Surety Bond to be held or even a Trust Account for the aquired appraisal fee’s to be kept until paid.
    Thanks Andrew Cuommo, you really thought this one out, if ya didnt go down in the books from messing up HUD and actually taking part in the very programs that acutally caused this mess maybe you will be known for screwing up another industry in which you know nothing about.