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At one point in time, Taylor Bean & Whitaker (TBW) was the “go to” FHA lender for many thousands of mortgage brokers and community banks across the country. For many community banks, TBW was the only mortgage lender in the game.

As a result of this TBW grew to be one of the largest privately held mortgage lenders in the country. Many thousands of people own their homes today because of TBW.

For several years, I had daily experience with TBW management, underwriting, closing and servicing. My impression was that the company had good intentions but that there was a serious lack of organization. A sort of “fly by the seat of your pants” attitude. I believe in the end, this was the downfall of the company. In spite of turning over enormous amounts of money, the company obviously ended up in a position where new business couldn’t quite wallpaper over the mistakes of the past.

I really believe that what allegedly happened in this situation was the result of simply floundering around trying to stay in business. Not a true attempt to steal anyone’s money, but the result of people becoming so mired in the day to day struggle that they lost sight of right and wrong, and what might happen if their attempts to fix things didn’t work. For all the mistakes that were made, I still find it sad that TBW is no longer in the picture. It started with a good idea that could have really gone on a long time if it had been better executed.

Following are some links with all the details of what was happening behind the scenes when TBW shut down:

The Department of Justice Statement
The Securities and Exchange Commission
Former TBW Chairman Charged in $2bn Fraud Scheme – Housingwire

FHA Streamline Refinance Guidelines 2010


Related posts:

  1. Taylor, Bean and Whitaker (TBW) Suspended From FHA Lending
  2. TBW, 3rd Largest Direct Endorsement Lender, Shuts Down
  3. FHA Mortgage Fraud Arrests
  4. FHA Down Payment Assistance Is Still Available

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Filed under: FHA Updates

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