12th largest mortgage lender bankrupt

Another huge blow for the mortgage industry, as the 12th largest mortgage lender, corporate bank Taylor, Bean & Whitaker Mortgage filed for chapter 11 bankruptcy this week.

CEO Taylor Bean said that Recent events have crippled the company’s business banking operations, and continuing business would be unsustainable.

It listed both assets and debt of more than $1 billion.

Taylor Bean was expelled from the ranks of mortgage lenders approved to do business with government-sponsored first time buyer mortgage agencies. The government cited possible fraud. Taylor Bean believes the decision was related to its involvement with Colonial and that it will appeal.

Taylor Bean terminated about 2,000 staffers after a failed attempt to lead an investments group that would have paid $300 million for a controlling stake in Colonial, which has since failed and been taken over by BB&T Corp