FDIC will seize Colonial and sell its assets to BB&T. This is the largest bank failure since WaMu last fall. Reuters:
Earlier this evening, Reuters’ Jon Stempel reported that Taylor, Bean & Whitaker has ceased lending. That makes TBW #351 on the Mortgage Lender Implode-o-Meter. Questions swirl about what happened. One possibility seems to be that the company just couldn’t manage its own growth. As other lenders disappeared and TBW’s FHA business exploded, it’s possible they just didn’t have sufficient internal controls to insure loans met FHA underwriting standards. When the company failed to file its annual financials with the government, things started to unravel.