WILMINGTON, Del. - Taylor, Bean & Whitaker Mortgage Corp., the 12th-largest US mortgage lender, has filed for bankruptcy protection as regulators question its involvement with Colonial BancGroup Inc. Recent events “have crippled the company’s business operation,’’ Taylor Bean said.
It listed both assets and debt of more than $1 billion.
Taylor Bean was expelled from the ranks of mortgage lenders approved to do business with government-sponsored mortgage agencies. The government cited possible fraud. Taylor Bean believes the decision was related to its involvement with Colonial and that it will appeal.
Taylor Bean terminated about 2,000 staffers after a failed attempt to lead an investor group that would have paid $300 million for a controlling stake in Colonial, which has since failed and been taken over by BB&T Corp.
