The new Federal Housing Administration commissioner said the suspension of Taylor, Bean & Whitaker Mortgage Corp. should send a clear message to the mortgage industry that the agency 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 speech last week in San Diego.
The Department of Housing and Urban Development suspended TBW from making FHA single-family loans on Aug. 4 after it learned the Ocala, Fla., lender failed to provide financial statements and did not disclose that it was the target of two investigations. Shortly afterward, TBW ceased originating loans.
Stevens, who was sworn in July 15, said in his speech that the agency will improve lender monitoring and tighten product guidelines and counterparty requirements to "ensure the strength of the FHA Mutual Mortgage Insurance Fund over the long term."