On August 13 we posted a notice regarding Taylor, Bean & Whitaker closing. Here is more information on the closing and links for additional information regarding the servicing of existing loans by Bank of America. TBW financed a number of properties in Cochise County.
Latest on the Suspension of Taylor, Bean & Whitaker
Last week the US Department of Housing and Urban Development (HUD) suspended Taylor, Bean & Whitaker preventing the company from originating and underwriting FHA-insured mortgages. Additionally, Ginnie Mae defaulted and took over TBW’s mortgage backed securities program. Finally, TBW’s wholly owned appraisal management company was shut down.
FHA said “FHA and Ginnie Mae are imposing these actions because TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud.”
FHA has released a series of FAQs for consumers and industry partners. Ginnie Mae created this document for consumers concerned about their loans with TBW.
According to a report by the Appraisal Institute TBW “was the 12th largest U.S. mortgage lender in the first six months of 2009, and the third largest lender of FHA loans in June. FHA agents raided its office along with the Florida offices of Colonial BancGroup Inc., for which Taylor Bean had depended on for short-term “warehouse” loans. Federal agents executed the raids after negotiations of a proposed deal that would have given Taylor Bean control over Colonial — which would then qualify the struggling bank for $536 million in federal bailout funds — collapsed.”
Source: National Association of Realtors Blog titled ”Appraisal Insight.” Posted on August 13, 2009.
Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.”
