The Department of Housing and Urban Development has temporarily suspended Taylor, Bean and Whitaker Mortgage Corp., from making new Federal Housing Administration loans and seized the company's $25 billion Ginnie Mae servicing portfolio pending the completion of an investigation by the HUD Inspector General.

Ginnie Mae also terminated the Ocala, Fla., wholesaler as an issuer in its mortgage-backed securities program. "FHA and Ginnie Mae are imposing these actions because TBW failed to submit its annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud," HUD said.

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