Taylor, Bean & Whitaker Mortgage Corp. Shuts Down. Why Could This Effect You?

Taylor, Bean & Whitaker Mortgage Corp. (Taylor Bean), a privately held mortgage company, was one of the largest independent home-loan providers in the United States. It's primary customers were mortgage brokers and smaller banks. Taylor Bean closed suddenly Wednesday  when the Federal Housing Administration (FHA) barred it from making loans insured by the government agency.

According to industry newsletter Inside Mortgage Finance Taylor Bean ranked 12th among U.S. mortgage originators in the first half of 2009 funding $17 billion of loans or 1.7% of the total loans originated. It was the third-largest originator of FHA loans in June (source - Inside Mortgage Finance, a trade publication.)

Some of the effects of the closing of Taylor Bean are being felt immediately. Loans that had closed but not yet been funded cannot be completed. Borrowers who had loans currently in process through the company will need complete new applications with another company. Some buyers will see their settlements delayed while they wait for approvals from a different lender.

The long term effects are not quite as clear. The number of wholesale lenders has been shrinking the past few years as some have gone out of business and others have withdrawn from the business. This has made it more difficult for mortgage brokers to place loans for their clients. There has also been some speculation that the closure of Taylor Bean will allow interest rates to rise because the remaining lenders will have less competition.

On a different note, remember that the First Time Homebuyers Tax Credit of up to $8,000 currently expires on December 1, 2009. Waiting to long to buy a home could result in being unable to take advantage of the credit. Remember, the new Truth in Lending Act (TILA) that took effect July 30, 2009 has the potential to slow down or delay settlements.

Call me with any questions you have concerning the current market.

To keep up with the trends in interest rates you can visit my Daily Market Report at www.mtg-info.net/DailyMarketReport.

I am always available to answer any questions you have concerning interest rates or mortgage loans.

Whether your looking to buy or refinance, call me today. I'm here to help. The best place to reach me is at my home office 301.353.9360. You can also email me at mtginfo@aol.com

Alan Gross
Home Office: 301.353.9360
Email: mtginfo@aol.com
Web: www.mtg-info.net