OCALA, FL-Locally based Taylor Bean & Whitaker Mortgage Corp. has been suspended by the Federal Housing Administration from making loans insured by the agency, according to the Wall Street Journal. The action follows raids by federal investigators earlier this week at the company’s headquarters as well as those at Florida offices of Montgomery, AL-based Colonial BancGroup.

As a result of the FHA action, Taylor Bean issued a statement Wednesday saying it is shutting down: “TBW is cooperating with each of the agencies with respect to its servicing operations and expects to continue to service mortgage loans as it restructures its business in the wake of these events.”

The Department of Housing and Urban Development, which oversees the FHA, said it took action against Taylor Bean because the company failed to submit a required annual financial report and to disclose “certain irregular transactions that raised concerns of fraud.” Officials declined to provide details about the possible fraud.

Privately held Taylor Bean is ranked as the 12th-largest mortgage lender in the US. Click here to read more from the Wall Street Journal.

This past spring, Taylor Bean offered to put $300 million into Colonial to boost the bank’s liquidity and value. The investment was contingent on Colonial receiving funds from the US Treasury Department’s Troubled Asset Relief Program (TARP), but Colonial said the deal fell through last week.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.