Rise in Foreclosed Homes Feared After Raid on Taylor Bean
Federal agents raided the offices of Taylor Bean and Whitaker Mortgage Corp. in Ocala, Florida. The raid effectively shuts down the company’s lending operations.
Industry analysts are concerned that the raid on Taylor Bean’s Florida offices could have disastrous fallout on its operations in Colorado. The mortgage lending company is a major issuer of Federal Housing Administration(FHA)-guaranteed loans in danger of foreclosure in Colorado.
Analysts said that Colorado is in the fifth position nationwide in terms of the highest number of foreclosed homes. Of the total number of delinquent loans, 576 that are seriously in danger of foreclosures, valued at almost $107 million, were issued by Taylor Bean and Whitaker under the FHA program.
Forensic investigators in Florida plan to examine the books of Taylor Bean for possible fraud following the mortgage lender’ submission of incomplete financial records to the government.
For some time now, industry analysts are concerned about the growing number of foreclosure properties in Colorado. And the raid on Taylor Bear had them fear the possible repercussions on state homeowners and the impact on the credit market.
Independent Banks of Colorado executive director Barbara Walker said that the turn of events and loans’ oversight took her by surprise, adding that there are concerns about possible options for community-bank participants.
According to industry experts, Taylor Bean originated and acquired over $30 million mortgage loans in 2008. The company holds 5 percent share in the FHA loan market in Colorado, issuing mortgage loans through bankers or community banks.
Experts said that small banking institutions with low cash flows typically depend on a national third-party wholesaler to create or negotiate mortgage deals. They added that Taylor Bean is the 12th biggest home loan company in the country.
Meanwhile, the 576 FHA-backed loans in Colorado that are seriously at risk were 3 months or more overdue. Industry experts do not know what will happen to these troubled loans now that Taylor Beans’ operations have been shut down. FHA officials said that some loans will continue to be serviced by the mortgage lender and some would be transferred to the Bank of America.
Taylor Bean issued 2,612 bad loans in Georgia, 2,139 in Florida, 1,016 in Ohio and 640 in North Carolina.
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