While many people are lamenting the collapse of TB&W, in truth it should be celebrated.
I'm sorry for the many fine innocent employees who have lost jobs, but the truth of the matter is TB&W was a bad company. Loose underwriting controls and a "we'll fund it" approach to business is what brought this once giant company down. Corporate recklessness and greed, things we thought were done away with when Enron blew up, and when the sub prime mortgage companies blew up, and when the Alt A mortgage companies blew up.... You get the picture. Senior management was aware if the financial hijinx going on with the books, when Deloitte figured it out, they resigned as the auditor. HUD figured it out and suspended them, FANNIE and FREDDIE figured it out as well and suspended them. Colonial Bank is going to be shut down in part because of it. When will this industry figure it out, don't send loans to poorly run companies. Don't pick price or ease of use over quality. As we pull ourselves out of this mortgage mess, it's time to allign ourselves with the best players out there. Best might cost a little more, be harder to deal with, have a higher standard than the "easy" companies but thats what will make this recovery successfull.
Keep watching the news, this TB&W mess is only going to get worse as more layers of the onion are peeled away. If you had loans at Taylor Bean, dust yourself off and go call a good investor and get that loan closed. Don't look back, look forward and build strong relationships with the good guys. That will help protect your future. We can take an active part in rebuilding this great industry, or we can think of ways to beat the system. If you choose that route, do it in another industry. I don't want you in mine.
