Mortgage firm reaches deal with state
A Florida mortgage company reached a $9 million agreement with 14 states to help struggling homeowners modify unmanageable loans, open up its books for review, and assist the states in their oversight of mortgage practices, the Massachusetts Division of Banks said.
Taylor, Bean & Whitaker Mortgage Corp., one of the country’s largest wholesale mortgage lenders, made the agreement following a multistate examination of its lending practices in 2006 of so-called exotic mortgages, including interest-only and adjustable-rate mortgages, state officials said.
The examination alleged loan originators altered income and asset information for prospective borrowers so the applicants would qualify for mortgage loans they could not really afford.
The company stopped offering nontraditional mortgages in early 2007, the state said.
