Bank Failures, Current Events, FHA, Meltdown, News

Federal Agents Raid Taylor Bean & Whitaker

From the Wall Street Journal:

Federal agents raided the Florida offices of Colonial BancGroup Inc. and wholesale mortgage lender Taylor, Bean & Whitaker Mortgage Corp. on Monday, days after a financial deal between the two firms fell through.

The special inspector general for the $700 billion Troubled Asset Relief Program said its agents had executed search warrants at the two offices in conjunction with the Federal Bureau of Investigation and the inspector general for the Department of Housing and Urban Development. A spokeswoman for the TARP watchdog said the warrants were sealed and could provide no further details about the probe.

Colonial spokeswoman Merrie Tolbert confirmed the bank’s office in Orlando, Fla., was searched by agents, but said she didn’t know what agents were investigating. “The bank is cooperating,” Ms. Tolbert said, adding that the bank’s day-to-day operations wouldn’t be affected.

Taylor Bean promptly shut down. The mortgage lender was the third-largest issuer of FHA loans, and their closure has left a number of mortgage brokers in dire straits.

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