TBW Files for Chapter 11

Tuesday, August 25, 2009 , , , 0 Comments

This should not come as much of a surprise to anyone with a heartbeat.


Taylor, Bean & Whitaker Mortgage Corp filed for Chapter 11 bankruptcy protection and said it may liquidate, three weeks after it closed its mortgage lending business and was suspended by a federal agency.

The Ocala, Florida-based company, which was the nation's 12th-largest U.S. mortgage lender from January to June, filed for protection from creditors on Monday with the U.S. bankruptcy court in Jacksonville.

Saying its business has been "crippled," Taylor Bean said it plans to operate on a scaled-down basis as it works to recover, restructure and possibly liquidate its assets.

It named Neil Luria of Navigant Capital Advisors as chief restructuring officer, and restructuring specialists Bruce Layman and Bill Maloney to its board.

"The speed of its collapse has been stunning," Luria said in a statement.

According to the bankruptcy petition, Taylor Bean has more than $1 billion of both assets and liabilities, and between 1,000 and 5,000 creditors.

The Federal Housing Administration said it suspended Taylor Bean on August 4, citing its failure to submit a required annual financial report, its having "misrepresented" that it had no unresolved issues with its auditor, and "irregular transactions that raised concerns of fraud." The FHA also proposed to sanction the company's chief executive and its president.

Shortly afterward, Freddie Mac (FRE) and the Government National Mortgage Association, also known as Ginnie Mae, suspended Taylor Bean as an issuer of mortgage securities.

You would really think a major player taken out of the game like this would have more of an impact on markets in general. I guess the apathy has fully taken over.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.