Watch Out for Loan Delays with TB&W Suspension

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stopIt’s been an interesting week. On July 30, the Housing and Recovery Act went into effect. Now, the nation’s 12th largest mortgage investor, Taylor, Bean and Whitaker (TB&W) Mortgage Corporation has closed its mortgage lending operations.

TB&W served as a major wholesale investor for many major mortgage brokers, such as Metro Brokers Financial, Inc. as well as smaller mortgage banks nation wide.

On Tuesday Aug. 4, TB&W was barred from making loans insured by FHA. On Wednesday, Aug. 5, was also barred from selling loans to Freddie Mac.

As a result, Taylor Bean will not be able to close and fund any more loans that are currently in their pipeline. All loans that are approved and not closed with TB&W will have to be moved to other mortgage investors.

In addition, TB&W was the 3rd largest FHA investor and a major investor partner with the Department of Community Affairs (DCA). They also controlled a large amount of the National Stabilization Plan (NSP) $14,000 funds for Georgia. However, DCA has not advised what will happen to the unused Taylor, Bean & Whitaker NSP funds. These government funds are currently reserved by homebuyers who are under contract to buy foreclosed homes in Georgia that meet the NSP program guidelines. 

So get ready folks, this could cause more delays in closings. As I found out more news about TB&W and the NSP funds they control for loans not yet closed, I’ll be sure to post it on the blog.

Note: Homeowners who have a mortgage with TB&W should continue to pay their mortgage payments as normal until they receive notice from TB&W loan servicing or a new loan servicer.

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16 Responses to “Watch Out for Loan Delays with TB&W Suspension”

  1. Terry Young Says:

    Thanks Judy for keeping us at Metro Brokers well advised and informed.

  2. Monique Mills Says:

    Wow, this is serious news. Thanks for the information.

  3. Anna Ighani Says:

    What happened? This is major news! Who will Metro Financial be looking to fill this gap? Thanks for keeping us informed and all your great tips. We are lucky to have you on our team here at Metrobrokers.

    • Judy Jones Says:

      Anna,
      Fortunately Metro Brokers Financial did very little business with TB&W. Thank goodness we only had 5 loans in process with them and have already found another source for 3 of those. I fear many other mortgage lenders and community banks that relied heavily on their partnership with TB&W will not be so fortunate.

      I am working to secure another Investor to place the other 2 loans we had slated to close with TB&W. Metro Brokers Financial’s goal is to successfully close these transactions for the buyers, sellers and Metro Brokers Agents in spite of this major industry news.

  4. Sandra Rodrick Says:

    It just get scarier and scarier out there! I hope the Metro Brokers agents are aware how fortunate they are to have the financial acumen and backing they have in Metro Brokers Financial. Iit’s a good place to do buisness these days, especially if you don’t look good wearing stripes!! Thanks, Judy.

  5. Anne Langley Says:

    Thank you Judy. As usual you are on top of things. What happened? Can we expect more of this in the future?

  6. Dennis Doll Says:

    Thanks Judy! As always, Metro Brokers Financial is on top of the issue. Seems like so many other Mortgage Brokers / Lenders have no idea what is going on with the industry. Their “latest news” is last weeks blog or tweet for us.
    Again, the Metro Brokers Blog keeps us all informed and up to date.

  7. Gladys B. Badger Says:

    Hello,

    I have a question, I have a short sale in which Taylor Bean and Whitaker was the lender. We have been getting the Run-around from Taylor Bean and Whitaker/Sparta Servicing, whoever they are. It has been 3 going on 4 months and nothing… any suggestions?

    • Judy Jones Says:

      Gladys,
      It is hard to know who will ultimately control any of the servicing of existing mortgages now that TB&W has been shut down by the Feds. and HUD.

      TB&W was a very large mortgage company. Once a new servicing company is announced, it would make sense that the first priority would be to handle the current mortgages that ARE being paid on time. Continuing to keep revenue flowing is key to all business functions.

      It could be a very long time before the servicer that will be taking over the short sell and foreclosure process of TB&W is identified.

      It could be weeks, months or even longer, depending on how long the Federal Investigation takes.

      The only suggestion I would make is to advise your buyer or seller that it could be a very, very long time before the new servicer is appointed.

  8. Arthur Harris Says:

    Judy,

    This is really too bad but at the same time positive, as it sends a message to prospective buyers to be more careful who they get their loans with. As you are on top of your game this should encourage more folks to use Metro Brokers Financial, we know whats going on in our industry.

  9. J Barnes Says:

    Hello Judy,
    I have a 30yr conv loan with TB&W. I am very concerned that our payments are not getting received and posted and may ultimately result in us losing our house. Aug payment was paid via INTERNET and was posted on TB&W payment history…..it never came out of our account and now history cannot be accessed. What will happen to all us innocent people who pay every month? Who do i make my payments to? Can i lose my home over this? I cannot even get info so i can refi with different company. If you can provide me with any info i would greatly appreciate it…… Thanks for your time,

    • Judy Jones Says:

      Dear J.,
      Sources in our Industry report that Bank of America (Mortgage Division) is taking over some or all of TB&W loan servicing.

      Due to the abrupt closing of TB&W, the loans were not prepared for servicing transfer or sell.

      Bank of America or any new servicer will have an added challenge in getting these loans transitioned from TB&W to the their system.

      You should not be in danger of losing your home. You should receive notification from your new servicer soon.

  10. ttiffany Says:

    II have a mortage through TB&W and my morgtage was being taken out electronically now I have no clue as to what to do or where to send my mortgage. (escrow money)

    • Judy Jones Says:

      Tiffany,
      TB&W did announce on Aug. 19 that they have not taken any automatic mortgage payments since Aug. 10.

      It is no wonder customers like you are confused, angry and fearful. The Florida Federal Regulator and TB&W are saying to send payments to the Ocala office of TB&W.

      Bank of America has been identified by Ginnie Mae and HUD as one of the companies that will be taking over existing TB&W loans.

      Bank of America has not transitioned existing TB&W loans and has not assigned them Bank of America loan numbers, so sending your payments to Bank of America is not a good idea until you are contacted by them.

      Customers who have made their payments on time are the most valuable assets for the companies taking over TB&W’s business, so I would expect that those customers will be contacted by the new servicers first. The process could take weeks or even months since there are over $140,000 TB&W mortgage customers.

      Hopefully you and the other 140,000+ TB&W customers will receive instruction soon!

  11. Karen Says:

    We also have a 30 year loan with TB&W and we are looking into refinancing and I cannot get into my loan info online or get a hold of anyone via phone. It is very scary. We have always paid our mortgage on time. Will this effect our credit?

    • Lloyd Carver, Loan Officer Says:

      Hi Karen,

      I am a loan officer with Metro Brokers Financial which is the in-house mortgage company of Metro Brokers/GMAC Real Estate. Personally, I think refinancing your TB&W serviced loan is a smart idea. Not only will you avoid future servicing headaches due to TB&W’s demise but, more importantly, interest rates have come back down and now is a great time to secure a lower rate with a more reputable lender. Your credit rating should be fine due to grace periods issued during transitionary periods like what you are gong through. Feel free to call me to discuss your situation. Lloyd Carver, 404-847-2525.

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