A bankruptcy filing is "imminent" for Taylor Bean & Whitaker Mortgage Corp., lawyers representing the mortgage lender said in a federal court filing last week.
The motion, submitted in U.S. District Court for the Northern District of West Virginia, was filed Thursday, a day after the privately owned Ocala, Fla., company ceased lending and dismissed most of its work force.
Meanwhile, an internal e-mail at Taylor Bean, dated Monday, referred to a new computer folder "to assemble all of our bankruptcy detailed spreadsheets and support."
Taylor Bean shut down its lending operation last Wednesday after the Federal Housing Administration suspended it from submitting loans to the government for backing. Ginnie Mae, a federal agency that guarantees payments on mortgage securities backed by FHA loans, took away Taylor Bean's rights to service those loans. Taylor Bean relied heavily on income from servicing FHA loans, which involves collecting payments from borrowers and handling other administrative tasks.