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Taylor, Bean and Whitaker (TBW) Suspended From FHA Lending

By Carl Pruitt

Mortgage and Lending with FHA Loan Advice

August 04, 2009 08:38 AM

The third largest FHA lender in the country Taylor, Bean and Whitaker Mortgage has been suspended from FHA lending effective immediately. In addition, the Government National Mortgage Association (Ginnie Mae) is also defaulting and terminating TBW as an issuer in its Mortgage-Backed Securities (MBS) program and is ending TBW's ability to continue to service Ginnie Mae securities.

"Today, we suspend one company but there is a very clear message that should be heard throughout the FHA lending world - operate within our standards or we won't do business with you," said HUD Secretary Shaun Donovan.

For full info, go to http://fhaloanadvice.com/taylor-bean-and-whitaker-tbw-suspended-from-fha-lending/

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Benjamin Smith

Apex Appraisals & Consulting - Powder Springs, GA

Atlanta Area Appraiser

It will be interesting to see if they survive this. Unless they can move quickly, they probably won't. All I know is that their conventional loans better look pretty attractive by tomorrow.

I just hope they can afford to pay the appraisal invoices they owe me!

Aug 04, 2009 05:43 PM

Gina Figueroa

Wallace Realty & Auction - Moultrie, GA

Does anyone know what happens if you have a loan package in the pipeline with TB&W? My lender is a company that usually received funding through TB&W. He said he would know what steps I should take tomorrow. I have a house set to close and my client has already paid for all the appraisals out of pocket!

Aug 05, 2009 08:24 AM

Carl Pruitt

FHA Loan Advice - Buford, GA

http://FHALoanAdvice.com

Gina,

I'm afraid your loan won't be closing with TBW.

From their announcement:

OCALA, FLORIDA – TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE RESPECTIVE FEDERAL AGENCIES.

TBW HAS UNSUCCESSFULLY SOUGHT TO HAVE THE TERMINATION/SUSPENSION DECISIONS OF EACH OF THOSE AGENCIES REVERSED. AS A RESULT OF THESE ACTIONS, TBW MUST CEASE ALL ORIGINATION OPERATIONS EFFECTIVE IMMEDIATELY.

REGRETTABLY, TBW WILL NOT BE ABLE TO CLOSE OR FUND ANY MORTGAGE LOANS CURRENTLY PENDING IN ITS PIPELINE. TBW IS COOPERATING WITH EACH OF THE AGENCIES WITH RESPECT TO ITS SERVICING OPERATIONS AND EXPECTS TO CONTINUE TO SERVICE MORTGAGE LOANS AS IT RESTRUCTURES ITS BUSINESS IN THE WAKE OF THESE EVENTS.

WE UNDERSTAND THAT THIS COULD HAVE A SIGNIFICANT IMPACT ON OUR VALUED EMPLOYEES, CUSTOMERS AND COUNTERPARTIES, AND ARE VERY DISAPPOINTED THAT A LESS DRASTIC OPTION IS UNAVAILABLE.

Aug 05, 2009 09:57 AM

Thanks, but I kinda figured that. Here what has happened to my client's loan...

Luck (?) just so happened that my husband meets a woman and started talking about TB&W. She mentions that she is with Bank of America and is an originator assigned to a "team" whose sole duty is to take on the loans that were in the pipeline for funding through TB&W. In less than 1 hour my loan has been transferred and is now sitting on a desk of an underwriter who is only doing these "crisis loans". If things go well it could still close with a couple weeks. I'll keep anyone who may be interested informed!

..What are the odds of meeting someone who is exactly the person you needed to meet at that time??? Serendipity! I guess other lenders can do the same, but it was nice to be able to tell my client I had something available to them to try to move forward with the closing quickly!

Aug 06, 2009 04:48 AM

Crystal Bush

I Am Marketing - Atlanta, GA

Atleast TBW was nice enough to inform their borrowers. I'm tired of hearing that there are people who get rolled over by their lenders when the lenders fault.

Aug 19, 2009 12:44 AM

Taylor, Bean and Whitaker (TBW) Suspended From FHA Lending

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