Taylor Bean closes doors

By
Mortgage and Lending with Guaranteed Home Mortgage Company

This was almost a daily occurence last year, but we haven't seen this in a while (at least at this large scale). Taylor Bean, the nation's 12th largest lender, ceased mortgage operations yesterday along with Colonial BancGroup. Here's a link to a WSJ article http://online.wsj.com/article/SB124949523458308423.html

It appears that they were doing something potentially fraudulent. Being in NY, I've never personally written a loan with them (they weren't licensed in NY). This seems to just continue the consolidation of the industry where there will only be a few large, strong lenders remaining in the end. I'm not sure this is a good thing as it leave cunsumers with fewer choices.

Luckily, my company did not have any warehouse lines with TBW, but many smaller brokers did. This will have huge ramifications for them and will probably cause more brokers to either leave the business or re-affiliate themselves with other companies. I'm sure Guaranteed will benefit by bringing on new offices!

Comments (2)

Chip Jefferson
Gibbs Realty and Auction Company - Columbia, SC

Im surprised there hasn't been more fall out. RBC announced it was discontinuing wholesale the other day as well. Its still a mess.

Aug 06, 2009 02:09 AM
Bill Ladewig
LoanOfficerSchool.com - Escondido, CA
Experience Is Your Advantage

TBW is a loss to the many borrowers in their pipeline because they will not be funded and are forced to scramble for funding elsewhere.  It is also a loss to the industry.  They were a major player with a great array of programs along with warehouse lines for other mortgage bankers.

Aug 06, 2009 02:15 AM