Legal representatives of US mortgage lender Taylor Bean have admitted that the company is on the verge of bankruptcy after it was forced to shut down mortgage lending operations.

Lawyers for the twelfth largest mortgage lender in the country said in court documents filed on 6 August that bankruptcy filing seems “imminent” for the company after it was targeted for punitive actions by the U.S Department of Housing and Urban Development as well as by the National Government Mortgage Association. The court papers have been filed in the US District Court for Northern District of West Virginia. Taylor Bean ceased mortgage lending operations from 5 August.

Last week the Federal Housing Administration announced that it had barred Taylor Bean & Whitaker Mortgage Corp from extending loans insured by the agency for a series of irregularities. These included not having submitted a necessary annual financial report with the federal agency as well as “misrepresenting” its audit transactions which had revealed financial irregularities with a possibility of fraud.

Taylor Bean & Whitaker Mortgage Corp is based in Ocala, Florida. It is one of the largest mortgage lenders in the country that is not owned by a major banking company.