The new Federal Housing Administration (FHA) commissioner said the suspension of Taylor, Bean & Whitaker should send a clear message to the mortgage industry that FHA will not do business with lenders that don't play by the rules.
"If you don't operate within our standards — if you don't act transparently and ethically — we won't do business with you," FHA commissioner David Steven said in a recent speech that was just released by the agency.
The Department of Housing and Urban Development suspended TBW from making FHA single-family loans on Aug. 4 after it learned the Ocala, Fla.-based lender failed to provide financial statements and did not disclose that it was the target of two separate investigations. Shortly afterwards, TBW ceased originating loans.
On Aug. 14, Stevens told a Housing Renaissance meeting in San Diego that FHA will improve lender monitoring as well as tighten product guidelines and counterparty requirements to "ensure the strength of the FHA Mutual Mortgage Insurance Fund over the long term."