Americas 12th Largest Mortgage Lender Closes

Taylor Bean and Whitaker Americas 12th largest home loan company has closed it's doors after being suspended by federal agencies F.H.A. and H.U.D. An auditor for F.H.A said: "Irregular transactions that raised concerns of fraud."

This is sending shock waves through the mortgage lending industry. Taylor Bean and Whitaker represent 1.7% of the total loans made in the amount of $17 billion dollars so far just this year. This is also not good news for customers having to refinance or currently have a loan pending with Taylor Bean and will have to look somewhere else for financing.

Taylor Bean has traditionally followed guidlines set by Fannie Mae, Freddie Mac and F.H.A. which has allowed it to surrvive while other lenders have failed in the last few years like one well known here in Albuquerque; American Home Mortgage. Taylor Bean also used documents such as utility bills to prove credit worthiness of FHA borrowers with lower credit scores.

Some Analyists are predicting a rise in current interest rates as larger lenders like Bank of America and Citibank do not have to compete with lenders such as Taylor Bean.