OFIR Orders National Mortgage Company to Stop Doing Business in Michigan

FOR IMMEDIATE RELEASE
August 13, 2009 
Contact: Jason Moon 517-335-1700

LANSING - The Office of Financial and Insurance Regulation (OFIR) has ordered Taylor, Bean & Whitaker Mortgage Corp., a national mortgage company, to immediately cease and desist from operating as a mortgage lender or servicer in Michigan. The Federal Housing Administration (FHA) suspended Taylor Bean’s approval to make FHA loans and the company’s status as an approved Freddie Mac and Ginnie Mae mortgage servicer was terminated due to questionable business practices and disclosures. Last week, federal investigators raided Taylor Bean’s headquarters in Ocala, FL.

As of December 31, 2008, Taylor Bean made nearly 4,000 mortgages in Michigan totaling over $500 million and serviced over 10,000 mortgages totaling over $1.2 billion.

“Consumers who have mortgages with Taylor Bean should continue to make their payments as usual and if they have any questions or complaints they should contact OFIR.” Commissioner Ken Ross said.

Consumers can contact OFIR toll-free at 877-999-6442 or at www.michigan.gov/ofir.

OFIR also ordered Taylor Bean to file a report with the agency that provides a list of each loan currently being serviced and the name, address and telephone number of each Michigan consumer that closed a residential mortgage with the company following the time at which the company failed to be approved as a Freddie Mac or Ginnie Mae mortgage servicer.

Failure to comply with OFIR’s order will subject Taylor Bean to one or more of the following:

• A civil penalty of not more than $3,000 for each violation, not to exceed a total of $30,000.
• Complete restitution to all persons in the state damaged by the violation.

To view OFIR’s order, visit: http://www.michigan.gov/documents/dleg/Taylor_Bean_Whitaker_Cease_and_Desist_288537_7.pdf

###