Unfortunately some more bad news has just been released about a large wholesale lender. I just received notice that Taylor, Bean and Whitaker Mortgage Corporation has ceased all operations effective immediately (August 5th, 2009 at 1:30PM). According to their press release, they were notified by the U.S. Department of Housing and Urban Development that they had been suspended as a seller-servicer with both Freddie Mac and Ginnie Mae. Their efforts to reverse this decision were apparently to no avail, so they will be unable to continue operations effective immediately.
The notice goes on to state that they will be unable to fund the current loans in their pipeline. In cases where this happens, brokers will have to transfer the loan file to a different wholesale lender. Hopefully most buyers will still be able to fund their transactions in time, but any clients who currently are working with brokers that have submitted their loan to Taylor Bean and Whitaker wholesale should prepare for possible delays. If you are a realtor who is working with a client that has their loan with Taylor, Bean and Whitaker via a broker or a banker who also brokers, it would be a good idea to contact the loan officer and find out what their plan is for resubmitting to a different lender.
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