Taylor, Bean & Whitaker Mortgage Corp.
filed for relief under Chapter 11 bankruptcy to focus on restructuring its operations and potential wind-down of its assets, the company said Monday.
The mortgage lender will continue to operate on a scaled-down basis as it begins recovering, restructuring and possibly liquidating its assets.
Taylor, Bean & Whitaker appointed two independent directors, Bill Maloney and Bruce Layman, to managed the scaled-down business. The new independent board appointed Neil Luria of Navigant Capital Advisors
as chief restructuring officer.
"This is a very complicated business, and the speed of its collapse has been stunning," Luria said in a corporate statement
. "We are very appreciative of the efforts of the members of management and other company employees, along with a large team of professionals, who have worked tirelessly under very stressful circumstances to make today's filing possible."
Luria added: "Much remains to be done, but we are committed to creating and realizing the value of the company's assets."
The filing follows weeks of regulatory crack-downs
by the US Department of Housing and Urban Development
, which suspended Taylor, Bean & Whitaker's FHA-approved status, and Ginnie Mae
, which terminated its status as issuer and servicer of Ginnie securitizations.
The servicing rights of Taylor, Bean & Whitaker's Ginnie portfolio transferred
to Bank of America (BAC)
, although the company still services nearly 35,000 private portfolio loans.
After the company said it would no longer accept online payments
or automatic payment reductions on mortgages it still services, the Florida Office of Financial Regulation
on Friday ordered Taylor, Bean & Whitaker to cease processing foreclosures
and assessing late payments.
Write to Diana Golobay