However, Reeh strenuously denied reports that the organisation had gone into administration.
Speaking exclusively to Mortgage Introducer, Reeh said his decision to step down was reached mutually with the board and stressed that it was ‘completely amicable’.
It was decided that the downsized group would no longer required both a chairman and chief executive.
Reeh denied reports that the group had gone into administration and stated the decision to pull out of the regulated mortgage market was based on economics.
The group will continue to trade in secured loans, commercial, lead generation and packaging.
He refuted any suggestion that the exit was prompted by the FSA’s surprise visit in November 2007 and Black and White Group had voluntarily rescinded its Part IV permissions.
Reeh said: “There comes a point where you’re in the wrong place at the wrong time. I feel for the great people that we’ve had to let go.
"I have had some interesting conversations in the last few hours and there are certainly more options to consider. I will take some time to reflect on my next move, as I don’t want to jump into anything.”
Commenting, Bob Sturges, director of communications at Money Partners, said: "We were saddened to hear of the Black and White Group’s difficulties and we wish Thomas and the rest of the team all the best for the future.”
