Taylor, Bean & Whitaker Mortgage Corp. announced it has filed for Chapter 11 bankruptcy protection, the move coming three weeks after a chain of events "crippled the company's business operation."

The death spiral began after the Federal Housing Administration suspended Taylor Bean's authority to issue FHA-insured loans. That was immediately followed by notices from Ginnie Mae and Freddie Mac (FRE) suspending Taylor Bean as an issuer of mortgage-backed securities and a mortgage servicer.

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