Taylor, Bean and Whitaker in Trouble: FHA Expulsion

by cyn.khoo | August 5, 2009 at 02:23 pm

16773 views | 14 Recommendations | 140 comments

Mortgage lender Taylor, Bean and Whitaker Mortgage Corp. has been suspended from the Federal Housing Administration (FHA), on grounds of possible fraud.

According to the FHA, Taylor Bean failed to submit a mandatory annual financial report and did not reveal they had unresolved issues with an independent auditor, which had found "irregular transactions that raised concerns of fraud".

The firm is the third-largest lender in the FHA, but may not survive the suspension, said David Lykken of consulting firm Mortgage Banking Solutions.

Taylor Bean and Whitaker is known for purchasing FHA mortgages from new lenders during their probationary periods with the agency, something most other lenders refuse to do. The firm also has a reputation of being "less strict" when underwriting FHA and "conventional" mortgages (which may be sold to mortgage companies such as Fannie Mae, who are supported by the government).

“I’ve heard it said it’s good that we have Taylor Bean there because no one else will buy these loans,” Lykken said. “To say they’re a bottom-feeder may be too strong a statement, but that’s how they’re viewed in a lot of cases.”

Some fear that considerable repercussions may result from the fall of Taylor Bean. Based in Ocala, Florida, the firm handles business from all over the United States and accounted for $17 billion in loans during the first half of 2009. According to Michael Moskowitz, president of New York lender Equity Now Inc., mortgage rates may rise with Taylor Bean's fall, due to the loss of competition.

“It’s just a question of demand and supply,” he said in a telephone interview yesterday. “If Taylor Bean goes down, it’s a pretty big deal.”

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Onceuponatime (not verified)

at 22:32 on August 5th, 2009

This is just the beginning. Taylor, Bean & Whitaker underwrote under fha guidelines appropriately. They kept their own paper, unlike so many others who are busy transferring service and warehousing lines... This shutdown is a back door action, and only the start of eliminating competition from the Ginnie Mae sector that is not under the govt control like fannie/freddie. You will see the fha sector begin to be the incredible shrinking universe. Just as the brokers are getting phased out, and yet the ones left ARE the ethical ones who know the regulations and are not afraid to adhere to strict regulations. The govt will be sure, with all the mods/foreclosure clean up going on inside the banks that are fannie/freddie, and by limiting the competition for mortgages by shrinking anyone outside of fannie/freddie to a minimum, to oust their competition in any other sector, and make sure fannie/freddie, over which they have control, will be the ONE STOP SHOPPING under the federal regulatory agency they are creating to oversee the monopolized mortgage industry in 2010. Lots of power and money to be had for any Body that corners that marketplace. Don't be fooled. TBW's shut down was guilty without a trial, sentenced without a judgement first. Many more of the fha/ginnie mae lenders have to watch out, for they are today's target market. The conventional fannie/freddie banks, slated to get bail out funds, who will play ball in the New Financial System, completely revamped in 2010 by a proposal being drafted right now by democrats to be on the floor before congress convenes for christmas 2009, will give you the details of the ONE STOP SHOP FOR MORTGAGES, eliminating the need for "choice" (for their will be little to no competition)

Rest easy. It's all in the PLAN. TBW is as guilty as Wells Fargo, Countrywide, Bank of America. But right now, TBW is the only one who had the burning light shined into their operation, and I'm sure the fiction will be written that it was in the "peoples" best interest and for their "protection" that action was taken, sentence was given, without fore-charges, without a hearing, without a fair and unbiased judgement being handed down.

Whatever happened to "presumed innocent until proven guilty"? Guess that doesn't apply to seizure and shut down, on demand. Where is the Constitutional rights? Who needs those. Your government is protecting YOU after all!

Mark V. (not verified)

at 13:43 on August 6th, 2009

Whatever! Taylor Bean has been sticking it to their customers and not rendering services that should have been renderedto their customers. It;'s about time they were stopped in their tracks and sent to the chopping block. I along with thousands of other customers of theirs have been stepped on and ignored for a long time and now it's their turn to get pushed around. You obviously have an intrest in Taylor Bean because nobody in their right mind should be defending a company that has taken advantage of their customers so openly. Good luck finding a job in this very economy that Taylor Bean helped create.

Micki Stephenson (not verified)

at 15:56 on August 17th, 2009

Way to go Mark. I have been an abused customer of TBW for 4 looooong years now. Have never been late on a payment. I had the pleasure of dealing with them when I wanted to change my Homeowners Insurance... I pay escrow every month for this and found it cheaper than I had it before. I also added flood insurance..(I am 4 blocks from the beach)...They refused to pay because I was not required to have flood insurance. It is my money ...I'll insure my house to the gills if I want too..needless to say hours of wasted "on hold"time and still not resolved. Had to pay my flood insurance out of my pocket and then 3 months later they pay the premium...what?????? Since they are closed now I am sure I will never be repaid for it but I am jusy SO HAPPY to be done with them. I would join a lawsuit this minute.... another example of greed.

The Truth (not verified)

at 13:19 on August 19th, 2009

Agreed Mark, I have been working with a client for 6 month trying ot get these MONKEYS at TB&W to do a Loan Modifiecation. TB&W anong with other banks, which by the way you will see a will all be closed down, have been a bunch of incompetent and arrogant people to deal with, let alone their inefficiency, just like all the Banks. Get ready America to the rude awaking of the Truth of the corruption of the US Banking system. The BIG BANKS Will also begin to get closed down too. This is only the Beginning

Jason Customer (not verified)

at 19:28 on August 24th, 2009

I am. I paid my mortgage. I have a fixed rate mortgage and never missed a payment. They lowered my payment. They always paid taxes on time and I never had a problem. Most of the FHA loans that weren't paid simply I am sure happened because those people didn't pay.Now away from the hate that is spewed from non payers. I always paid on time but now because of the people that don't pay I can't even pay my taxes because my escrow money is moving. That is the big hit. I never missed a payment on my mortgage and now I can't even pay my taxes. TBW went out of business and abruptly went out of business so now my money is moving and the company that my mortgage was purchased by isn't taking calls. I am sorry that all of you didn't make payments on time or lost your chance at a lower interest rate or wanted to save your home but it is about time that real paying customers get some service. I mean NOW.

Earl Delk (not verified)

at 14:57 on August 14th, 2009

Taylor Bean is a rip off. They ignore their customers ans refuse to answer phones. I hope they die in hell.

Mike Castle (not verified)

at 13:04 on August 18th, 2009

I heard B of A is taking the giant TBW over. That is interesting as B of A is in lidigation with Country Wide and of course TBW is in a criminal investigation. FEDERAL Law stops any transfer of contracts between companies in lidigation. Crimminal conduct stops all contracts from being assumed by anouther lender that is also in lidigation. Failure to send "Federal Notice" homeowners of any transfer of their contract within thirty days makes all contracts nul and void. My payments sit in a bank and were refused. I do not have a contract with B of A and smell a stinking dead fish.

Jason Customer (not verified)

at 19:34 on August 24th, 2009

Not true. Read the TBW front page my loan isn't with BOA. The government made it big here. All of the bad loans are sold to third party. The FHA loans to BOA. Mine to a horrible bank that doesn't even have an address on their website. I never missed a payment. FHA customers get BOA I get nothing. BOA wanted those FHA loans which the government probably gave them to get more funds from the government and renegotiate those loans so that they can be paid.

jay-p (not verified)

at 10:22 on August 21st, 2009

Your an idiot they got what they deserve the companies customer service was the rudiest and the most disrespectful group of employees i've ever dealt with in my life. Taylor Bean deserves everything that's coming to them HA HA HA. Good Luck

mcomark (not verified)

at 06:03 on August 6th, 2009

I have been saying it for months - the government and the banks are pushing everyone out of business so that they can have the monopoly regarding mortgage loans. Mortgage Brokers have taken the biggest hit and I'm ready to file my class action lawsuit against the Banking Institutions and the Federal Government for : unfair business practices, unfair business dealings, discrimination, restriction of trade. The Mortgage Broker is NOT responsible for any financial issue. The Mortgage Broker DID NOT create any sub prime loan program, interest only, pay option ARM. These were created by Fannie and Freddie at the direction of the President.

The foreclosure issue - have you seen the proof? The reason the consumer is going into foreclosure is for loss of job/income, divorce, death/medical issue. Where is it listed that the reason for default is the low interest rate mortgage they were provided? Maybe if the consumer were to be responsible for their spending! What do you think?

Taylor Bean and Whitaker may have not filed their report on time and there may be other issues that are not know yet. What about Chase? What about PNC Bank? Are they using the Government funds correctly or are they padding their bottom line? Are they providing more financing? Answer would be no as they have tightened their grip. Why are they not being shut down? Did Fannie and Freddie have accounting issues? You bet they did and what happened to them? They CEO got awarded for his leadership and got his million dollar bonus.

What's next? How about the stupid New and Improved Good Faith Estimate. Take a real close look at this one people as you will see that it is yet another blow to the Mortgage Broker ONLY. Banks do not have to disclose their income and then reduce consumer fees. Amazing, why is the Mortgage Broker the only entity that has to show their income and then give it away? What about Auto Dealers delivering auto loans to the Banks? Are they going to also give the YSP back to the consumer as a reduction to the loan or cost of the Auto? What about the grocery store? I want to know their profit margin and I want that back as well. Freaking get off the Mortgae Broker!

Sorry, back to the stupid New Good Faith Estimate. Did anybody actually look at this? All this does is provide a cost estimate of closing costs and a way to shop for the best deal. That's great! You show a client the "Total Costs" and what are they going to think? The "Total Cost" is what they will need in order to purchase the property. Are they correct? I'll wait while you think on this one............. Time is up. What the great people in HUD and whatever other stupid group worked on this forgot was --- DOWN PAYMENT. Nowhere is it on the New Good Faith Estimate. The old one had it, why not the new one? Wait, their sole purpose was to get rid of the Mortgage Broker and YSP.

Come on people, wake up. Get as pissed as I am and get involved. Remember, the President and Congress are our elected officials and they work for us. They answer to us and if they do not do the job that we ask of them, get rid of them. My taxes pay thier salary and I think it is time I get a return on my investment.

By the way, every business is cutting corners and cutting salaries. Our elected officials found it necessary to give themselves a RAISE. How freaking nice.

Dougie Doo (not verified)

at 06:56 on August 10th, 2009

I both agree and disagree. TBW is probably in some serious trouble and I can't comment on its guilt or innocence. However charges like this indicate more than smoke in the building. Where then is the fire? TBW is guilty of something beyond bad service.

I do agree with the contention our elected and bureaucratic officials would jump with glee if successful in shutting down another independent. They simply want to socilaize mortage lending and have been trying to do so for some time. From the time Barney Frank conveniently forgot all the regulatory exemptions he bestowed upon the industry and both FANNIE and FREDDIE, to legislation erasing basic economics (yield-spread premiums and pricing), the socialists have been gunning to takeover this money pie. The Community Reinvestment Act, although well-intended, was a train wreck looking for the intersection, and totally unnecessary. The big govie people are going after there main heart throb, controlling housing. To control the backbone of our country, both financially and socially, is too big a temptation for these power-hungry demagogues to ignore.

I am not that Raines, Howard (whose staff member reportedly was Barney's "friend") got off with such a light slap on the risk. Everyone in the game, HOMEBUYERS INCLUDED, are guilty; but these two did so much to send us down this road. Raines got his wish to get to Pennsylvania Avenue. It just led him to Capitol Hill not the White House. Barney gets his takeover without any of his boys going to jail. Is this a great country or what?!

Onepissedconsumer (not verified)

at 16:12 on August 6th, 2009

My loan through Platinum Bank ('Taylor Bean) was scheduled to close tomorrow. Now I am having to secure another mortgage and lose the under 5% rate I locked in on all because the Feds wanted to make Taylor Bean the "Example." I'm sure there were some irregularities to be found, but if someone like CountryWide can escape the government wrath, then something is definitely WRONG!

I am being inconvenienced with my time and my money. At this point, I don't know how much more this will cost me, it could be enough to be a deal breaker. We are just in a "holding pattern" until the first of next week.

THIS SUCKS!

Anotherpissedcustomer (not verified)

at 19:38 on August 11th, 2009

I was scheduled to close Aug 5th at 6:00 p.m. Will I loose my 5% interest rate? This really pisses me off too.

Borrower (not verified)

at 16:21 on August 6th, 2009

TBW was a great company and servicer. I have had my loan handled properly for several years without any incident. I also used them as a lender to place loans with. They brought technology to the table that no other company did. It is ashame so many banks acoss GA now do not have a company like TBW to use for their mortgages. So many lenders stopped their correspondent lending. I wish Lee and all of his best wishes. You are loved greatly and all the GA banks appreciate everything that you provided us over the years. You were the first to provide a paperless mortgage process for underwriting. I love all you guys! TD

mommymouse (not verified)

at 18:17 on August 18th, 2009

I don't see how you can say TB&W brought technlogy to the table? They are still waaaaaay behind in their payment option online. It may have been great for the underwriters but NOT for the customers.

Losinghopeofmydream (not verified)

at 06:54 on August 7th, 2009

I, too, was pending closing on my first home purchase. I have been screwed around by other lenders several times before and now I don't know what is going to happen. I have a dream. It does not include paying taxes and healthcare payments and my mortgage dollars to our federal governement.

What the ??? (not verified)

at 08:25 on August 7th, 2009

No wonder no one in the Fla office ever answered the phone. I have called so many times only to be on hold for up to two hours. I have repeatly tried to log onto their website so I could pay my Aug payment , only to get a restricted message. Where do we homeowners send the payments now?? I never mailed a payment since I got my loan back in June 08. I always paid on line and never have I been late with a payment...well until now. Is that going to show up on my credit report as being late even though it was no fault of mine? What a mess this created for current homeowners, hopeful homeowners, and lenders alike.

Can't make payment (not verified)

at 11:45 on August 8th, 2009

I am in the same boat. Have multiple mortgages at TB and have never had a problem paying on line... I was able to pay all but one because it is "restricted". Called the check payment by phone option and was told the loan was "blocked". It is a VA loan. Guess that's the problem. Don't want to be late!

cassie (not verified)

at 07:07 on August 9th, 2009

i am in the same boat. have u found out how we make our payments and if they will be considered late?....... this is bs!..... and do dissapointing! i pay all my bills online, why is it saying "restricted"

Crystaldavis (not verified)

at 06:53 on August 12th, 2009

This was posted on the TBW website for those who need to make a payment.

Unfortunately, at this time we are unable to offer an online payment option. Please mail your payment to the following address:

Taylor, Bean & Whitaker Mortgage Corp.

Attn: Cashiering

1417 N. Magnolia Ave.

Ocala, FL 34475

Also, please be sure your loan number is written on your check and include any special payment instructions such as additional payments to principal or escrow.

If you have recently received notification your loan was transferred to a new servicer, please disregard these payment instructions and follow the instructions outlined in the transfer notice.

Taylor, Bean & Whitaker Mortgage Corp. has officially ceased a majority of its operations on August 5, 2009; however, we will continue functioning in a reduced capacity until all loans have been transitioned to new servicers.

Zeeshan Abbasi (not verified)

at 14:14 on August 17th, 2009

Same boat! Where the heck to make payments?

Thanks

Jeany (not verified)

at 08:35 on August 11th, 2009

Did you ever paid the loan? How? I have the same problem too.

jjc3 (not verified)

at 10:25 on August 11th, 2009

I am with you. I pay online and get the same restricted message and I have not been able to get them on the phone. I have no idea how to pay my mortgage and i have had it with TBW for a while. I sent them the email it asks for and have not heard a word. Good luck everyone, this is the government in action at its finest.

rachel 117 (not verified)

at 18:52 on August 21st, 2009

Yes, me to i can not pay my mortgags payment. Now what is America going to be left to do when are one and only GOV. Runs the UNITED STATES OF AMERICA not only do we give taxes to are (GOV) but are heath insurance, are morgage loans hell what more do they need they print the money!! Do you not see that we are taken from are kids counrty... Also was this the plan? Shut down the morgage companys so the gov can take over a company just so they can bank off it why not them? Dont you know that its a home you live in............and that same home will work for you you can make a home work for you!!!!!! All most a good idea yeah good for now so the GOV can get back some of the money he just passed out to cover up his real plan!!!! Next are auto makes!!!!! Is this a bad thing? How can we tell now? maybe it looks like it but it could turn to be the best ARE GOV. the most riches powerful in the world to back up are morgage,loans,cars,healt? What if in 2011 or 2012 ARE GOV.own and had monoply on are morgage loan, and all uninsured Americans was takn care of with full benifits to any hospital!!!! People we need a change now how it changed the way it was changed maybe wrong!!!!! Think about it like this they only need one morgage company to booossst sales with all the homes TB&W in the (GOV) hands for ever or even 18 months would have to add up to $18,000,000 for 18 months at 1250 home (times)with payments at 800= $18,000,000!!!!!!! This could be the end of morgage lenders and a new begining for the U.S. government..... one day the counrty is going to tell us how to live are lifes we will depend on them for everything money loans the fatih of are country will be in the hands of the most powerful this could turn very bad if in the wrong hands Obama will not all ways be here!!!!! We find out all the time that all people in the high court doing things the wrong way. Morgage companys stealing from US U.S.A. OIL, Cars, Bailouts, Grants..... We even have to pay taxes on top of all the other things we owe for....... So sorry for anyone who losses a home in the future by the goverment, your heath care as well along with no home and your going to owe back taxes all to the ones who will one day run the system...... Cash for clunkers did not make it a month!!!! We should be a shamed of are GOV.... If we dont act now and stop this it will be to late!!!!!!

Copeland (not verified)

at 18:20 on August 10th, 2009

I am walking in your shoes!! Except I am in Ohio, and just found out about this today!! My insurance agent called me and informed me of this when she was updating my coverage. Our payments were auto withdraw from our checking and I never have had any problems til this month, the current payment has not been deducted, and I have not a clue where or who to send it to! If you find out anything can you please post here?

Thanks.

Kimb (not verified)

at 13:08 on August 18th, 2009

I just got off the phone with TBW and asked the same question, my payment has not been withdrawn from my bank yet. Their response, it will be done by the end of the week as they do not have enough staff to handle the work.

I have yet to receive notification as to whom is taking over the mortgage and asked the rep, when where the customers going to be notified and her response was ma'mm I didn't receive any notice when I got laid off! What the heck kind of answer is that?

They also advised me that me account will be not be late, but then again you never know.

Kevin B (not verified)

at 10:58 on August 11th, 2009

Please respond if anyone has figured this out. I like everyone else am having the same problem and am sick of listening to "Please continue to hold" for 20 minutes through their joke of a customer service line. Amazing a company doesnt want to collect money.

Heather B (not verified)

at 08:40 on August 12th, 2009

I am a borrower. My Mortgage is/was held by TB&W. I can still access my basic loan info online.

I have spend a lot of time researching this. Where you send your payments depends on which type of loan you have. BofA is servicing the FHA TB&W loans. TB&W is still servicing their conventional loans. Here are the details.

1) FHA loans - go to the web page below to read about your loan payments.

http://www.hud.gov/news/consumer-guidance.pdf

If you cannot view the pdf and do not want to install the free Acrobat Reader (available from http://get.adobe.com/reader/otherversions/) then here is the address. There is a lot more info in the pdf though and I encourage you to read it.

---FHA Loans through TB&W only---
You should continue making your mortgage payment at its normally scheduled time.  However, your payment should
now be sent to:
BAC Home Loans Servicing, LP
Payment Processing
P.O.  Box 10334
Van Nuys, CA  91410‐0334
Please use your TBW loan number until you are notified in writing by BAC Home Loans Servicing of your new loan
number.  You will receive a letter from BAC Home Loans Servicing confirming your loan transfer and welcoming you as a
valued customer within two weeks of being added to their systems.  If you have additional questions about servicing
your loan, you may contact Bank of America Home Loans Customer Service at 1‐800‐669‐6607 from 5am to 6 pm PST
Monday‐Friday.

2) If you have a conventional loan, then TB&W is still servicing you loan at this time. Here is the information I received from TB&W

-------TB&W conventional loans only------
Please be advised that Taylor, Bean & Whitaker Mortgage Corp. has officially ceased a majority of its operations on August 5, 2009. Only essential staffing will be retained to finalize operations and to ensure a streamlined transition of Servicing Rights for our remaining portfolio. As the transfer of loans continues to occur, correspondence will be mailed to each account holder detailing their new Mortgage Servicer’s information and transfer date. In the mean time, all online payments have been disabled. If your loan is still being Serviced by Taylor, Bean & Whitaker Mortgage Corp. please mail your payments to the address provided below:

Taylor, Bean & Whitaker Mortgage Corp.
Attn: Cashiering
1417 N. Magnolia Ave.
Ocala, FL 34475

We sincerely apologize for any inconvenience this issue may have caused you and appreciate your patience during this transition.

------

Hope this helps.

Heather in Oregon

Heather B (not verified)

at 09:33 on August 12th, 2009

Hi all,

I just got off the phone with BofA and they said they are taking over all TB&W loans, not just the FHA government backed loans.

Sorry about that.

Heather

DEBRA DAVIS (not verified)

at 19:17 on August 17th, 2009

I ALSO HAVE A LOAN WITH TBW AND WAS TOLD THAT BOA WAS NOT SERVICING ALL LOANS. I WAS TOLD THAT MY NEW SERVICER WOULD BE OCWEN LOAN SERVICING. I HAVE NO IDEA WHO THEY ARE. HAS ANYONE HEARD OF THEM?