FHA suspends its third-largest lender, Taylor Bean

An audit uncovered possible fraudulent transactions Taylor Bean has not submitted an annual report as required, and misrepresented issues, said the FHA.

The Bloomberg story on this is instructive. Even though it quotes sources saying Taylor Bean are “bottom feeders” and known for lax standards, Bloomberg seems much more concerned that the probable collapse of the company means mortgage rates will increase because of less competition.

That seems a remarkably short-sighted view. Like, we need to pump out mortgages at low rates even if they are fraudulent?

Update: Taylor Bean just announced they are ceasing operations. That didn’t take long.

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