It’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.