I feel like the world is a different place...yet again! Taylor Bean & Whitaker: the 3rd largest FHA lender in the nation has closed its doors today due to a mistake by the "powers to be" in upper management. SO, many jobs were lost today along with many homeowners who had their loans in process are now scrambling to obtain a new mortgage, potentially at a higher rate.
Click on this article for specific information:
http://www.ocala.com/article/20090805/ARTICLES/908059981/1402/NEWS?Title=Taylor-Bean-Whitaker-closes
In my little world, I ask myself, "With so few lenders left and there being so many homeowners still needing help, wouldn't it have been prudent for the government to keep this lender in business?"
For months now, we have all been suspicious something was going on at this lender. Fundings were slow. Everyone at Taylor Bean was being told it was Federal Reserve issues or document issues. The employees were being kept in the dark. Even today, after the news hit yesterday that they were suspended from originating and underwriting new FHA loans, the managers were telling us outside originators that we would be funded on closed loans. Around 2:00 today we heard that was wrong, as well. Taylor Bean shut down its operations: TOTAL CLOSE. ALL employees were told to pack their belongings and leave.
Not only is this bad for the homeowners and future homeowners, but it is BAD FOR THE INDUSTRY. Every employee at every lender is now wondering "Are we next?"? Now, some people might think this is great since Taylor Bean will be used as the sacrificial lamb: "Don't do what they did, or you, too, will be closed." I think it is bad because it will further clog the already over burden system AND the lenders that remain just become bigger and more apt to make more mistakes. The bigger one is, the tougher one is to control.
What do you think? Should a lender be closed down OR suspended until the operation is corrected: Fire the ones who caused the problem and KEEP the employees employed who were doing their job!
Share your thoughts.
Ann Sabbagh
Vice-President
Seacoast Mortgage Corporation
508-243-1190
Please visit my website: www.annsabbagh.com
"When you choose me as your mortgage consultant, you also choose a financial planner who cares about your financial strength."
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