The Federal Housing Administration (FHA) has suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Florida after
TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor. The auditor has uncovered irregular transactions that raised the flag of fraud and had ceased their investigation.
HUD Secretary Shaun Donvan had this to say in a HUD press release:
“Today, we suspend one company but there is a very clear message that should be heard throughout the FHA lending world – operate within our standards or we won’t do business with you,”
The Government National Mortgage Association (Ginnie Mae) is also defaulting and assuming control of TBW’s nearly $25 billion Ginnie Mae portfolio. Ginnie Mae has assured TBW’s customers that a new servicer will be found and the transition will be seamless. You can read the rest of the release here.
TBW may appeal the suspension by submitting a written request for a hearing in front of a Administrative Law Judge within 30 days.
You know there problems when people aren’t coughing up the documentation to clean there slate. FHA has it’s problems like over regulation from being the extremely lax in the past. No big surprise here I bet you’ll see more and more of this coming to fruition soon.
You know what they say…if you follow the rules you can never get in trouble. Good for FHA to send a clear message to lenders. I would be upset if a lender I was recommending was knowingly committting fraud. If I refer someone that’s still my name on the line.
People just need to do what they are suppose to do. If they did this it would make life so much eazier. We have to many lenders out there anyways.