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State Banking Commissioner Pitkin Issues Cease and Desist Order Against
 Taylor, Bean & Whitaker Mortgage Corporation

August 12, 2009

Connecticut State Banking Commissioner Howard F. Pitkin today issued numerous orders against Taylor, Bean & Whitaker Mortgage Corporation (TBW).These orders included a Temporary Order to Cease and Desist, Notice of Intent to Revoke Mortgage Lender Licenses, Notice of Intent to Issue Order to Cease and Desist, a Notice of Intent to Impose Civil Penalty, and Notice of Right to Hearing. 

TBW is a state-licensed mortgage lender located in Ocala, FL, with seven branch offices in Connecticut.  The Commissioner’s action was the result of an ongoing investigation into possible violations of the Connecticut General Statutes by TBW.  Upon receiving this order, the company is required to cease and desist all actions which violate the Connecticut General Statutes and is placed on notice that a fine of up to $600,000 could be levied. 

On August 4, 2009, the Federal Housing Administration announced it had suspended TBW from originating any FHA-insured mortgages after allegations of financial misrepresentation and the failure to disclose a multi-state settlement agreement.  Simultaneously, the Government National Mortgage Association (Ginnie Mae) announced it had suspended TBW as an issuer in their Mortgage-Backed Securities program and ended their ability to service Ginnie Mae securities.

The Department of Banking had been monitoring TBW’s practices regarding the closing and funding of real-estate loans in Connecticut since January 2009. This order comes after a monitoring program in which the Commissioner learned that the company apparently closed 15 loans in Connecticut and failed to fund them.  Additionally, 110 loans in Connecticut were found to have been closed but apparently funded late.

“The agency is working with TBW to assist in finding qualified lenders to consummate the unfunded but closed transactions,” commented Commissioner Pitkin.  “My primary responsibility is the protection of Connecticut consumers. If you have a loan that closed but remains unfunded, please call the Department of Banking at 1-800-831-7225. We will do our best to assist you with your transaction.”

Individuals who have pending applications with TBW should also contact their originating broker, mortgage company, or lender to find alternative funding sources. Borrowers who have loans serviced by TBW should expect to be contacted by new servicers over the next several weeks.  These transitions should be seamless to consumers.

Additional Information:

Taylor, Bean & Whitaker Mortgage Corporation
Administrative Order