Bank Failures, Bankruptcy, FHA, Meltdown

Taylor Bean said to declare bankruptcy soon

From Reuters/Yahoo News:

Lawyers for Taylor, Bean & Whitaker Mortgage Corp, the 12th-largest U.S. mortgage lender, said in court papers last week that a “bankruptcy filing is imminent” for the lender after it was forced to shut down mortgage lending operations.

In court papers filed on August 6, in U.S. District Court for the Northern District of West Virginia, lawyers for Taylor Bean said that due to recent actions taken against the company by the U.S. Department of Housing and Urban Development, and mortgage financiers Freddie Mac (FRE.N) and the Government National Mortgage Association (Ginnie Mae), the company is expected to file for bankruptcy shortly.

The Federal Housing Administration said last week it had barred the Ocala, Florida-based company from making loans that the agency insures, for having failed to submit a required annual financial report and “misrepresenting” its dealings with an auditor that had discovered “irregular transactions that raised concerns of fraud.”

The lawyers, from the law firm Steptoe & Johnson, had made the statement in a request to halt a civil litigation proceeding saying that the company’s lawyers had “received word that a bankruptcy filing is imminent.”

Taylor Bean ceased mortgage lending operations on August 5.

A bankruptcy by TBW would be absolutely huge.

America declare bankruptcy - New York, originally uploaded by `© Maciej Dakowicz`.

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