FHA Suspends Taylor, Bean & Whitaker

I feel like I’m one of the few mortgage originators who have never worked with mortgage giant TBW…many mortgage brokers and lenders do.   FHA’s Press release states:

“TBW is the third largest direct endorsement lender of FHA-insured loans and the eighth largest issuer of Ginnie Mae mortgage-backed securities.”

They are a significant mortgage company and this will impact those brokers and lenders who rely on TBW for FHA financing.   This suspension is temporary “pending the completion of an investigation by HUD’s Office of Inspector General, an ongoing review by the Department’s Office of Housing, and any legal proceedings that may ensue.”

From HUD’s News Release today:

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’s suspension is also based on TBW’s failure to disclose, and its false certifications concealing, that it was the subject of two examinations into its business practices in the past year.

“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.

TBW has the right to appeal, however HUD is not delaying their actions.  In addition, HUD debarment of two top executives at TBW. 

This must be leaving many borrowers and mortgage brokers scrambling for other sources to send their FHA transactions in process. 

This entry was posted in FHA, Industry Talk and tagged , , , by Rhonda Porter. Bookmark the permalink.

About Rhonda Porter

Rhonda Porter is an NMLS Licensed Mortgage Originator MLO121324 for homes located in Washington state. Her blog, The Mortgage Porter, is nationally recognized for sharing relevant information to consumers about mortgages. She has been originating mortgages since 2000 at Mortgage Master Service Corporation #40445 Consumer NMLS Website: http://www.nmlsconsumeraccess.org/TuringTestPage.aspx?ReturnUrl=/EntityDetails.aspx/COMPANY/40445 NMLS ID 40445. Equal Housing Opportunity. You can follow Rhonda on @mortgageporter, Facebook and/or Google+

87 thoughts on “FHA Suspends Taylor, Bean & Whitaker

  1. I use TBW for FHA mobile home transactions after waiting 45 days in line and now this. I love how the government just comes in and shuts down, what about the people , clients that have no where else to go for Mobile financing .

  2. If you have an FHA loan in process with a mortgage broker, you may want to touch base to see where the loan is being sold to. If it’s TBW, they’ll need to find your mortgage a new home–the mortgage may not be with TBW (there are other resources for brokers). 🙁 What a mess.

  3. Ouch…it’s been a while since I have done a loan with TBW, but I liked them….decent products and pricing, very good on-line tools, and a first class local AE.

    I was setting up to do a FHA Rehab purchase loan with them, hadn’t quite committed.

    I sure hope this gets resolved soon.

  4. You are not alone, I have never done any biz with TBW.

    And good for HUD, I wish they could kick some of the local and out of state scum out of here because it does not seem like DFI has the power to do so.

  5. They also did FHA manufactured homes, many lenders won’t.

    TBW has completely shut down originations, effective immediately. That’s left a lot of stranded loans, since they are not completing any loans in the pipeline.

    I do not celebrate their demise, nor the suffering of their employees and customers.

    And DFI has done quite a bit to shut down lending abuses, within the powers and resources that are granted to them. We could always hope for more, but the unintended consequences sometimes hurts folks that should not be.

    Like borrowers …

    Sigh…at least it resolved quickly, proving the dictum, be careful of what you wish for…

  6. I don’t celebrate this either, Roger. Too many innocent victems here and I’m glad DFI’s around to regulate LO’s (mortgage brokers and correspondent lenders)… Seattle Times (or PI) wrote about how Washington State consumers are safer working with mortgage originators regulated by DFI vs those who are not (banks).

  7. CR is reporting that TBW is ceasing ALL operations and they will not be funding anything in existing pipeline. Evidently, the agencies are also not accepting any more TBW loans.

  8. Tim, do you have transactions that have been impacted? I hear that in additional to 203k’s, TBW was also one of the few lenders to still do manufactured homes FHA for brokers.

  9. Rhonda, do you know why lenders who do FHA loans don’t do all of them? Is this a lender choice or a HUD choice?

    Is a 203k a manufactured house loan? A 203b a rehab loan? Are there others (besides the FHA fixed and FHA adjustable loans)?

  10. Leanne, an FHA 203k mortgage is a “rehab” mortgage–it’s used to make certain allowable repairs to a home (purchase or refi) and the financing is all one loan insured by FHA (same MI and FHA guidelines). I’m working with some clients who want to do some minor repairs to a home, the sales price is $280,000 and they’re going to use an additional $20,000 for repairs utilizing a 203k streamline (limited to $35,000 rehab funds). Their actual mortgage/purchase amount will be structured based on $300,000 (280k contract price plus 20k rehab) with 3.5% down payment and one FHA loan with a low rate. You can’t beat it. And it’s been increasingly popular with the destressed homes that may need a little tlc.

    203(k)s are more complicated than a standard FHA loan as there are draws and inspections that take place. Not all lenders want to offer them and some mortgage companies do not have access to them. Mortgage Master recently began offering them since the program has been improved (we could have done 203k’s years ago but MM made the choice not to).

    We are able to do 203k’s because of our correspondent relationships with our lenders. Mortgage Master also has a “full eagle” with HUD. HUD has different approval levels that lenders may obtain–it’s a huge process which requires a certain networth and yearly audits (which are pricey).

    Many lenders opted to not to have FHA loans because of the expense and it does take HUD approval. We have our own FHA in-house underwriter which is also an added expense.

    Some brokers can be sponsered by FHA approved lenders if they meet certain criteria.

    There is also a risk of buy backs for these (or any products). Take manufactured homes, for example, worse case scenario no mortgage company wants to have to buy back and own a manufactured home.

    Mortgage companies do have the right to pick what products they want to offer and not offer…but they can only offer what is available to them.

    TBW is one of the few lenders who offered 203k and FHA manufactured homes to mortgage brokers. This is a huge loss for brokers.

    FHA also has reverse mortgages (for refi and purchases) HECM.

    • Rhonda,

      I’m a contractor who has just finished work on a 203k rehab for my client. I had been paid one draw up front for the project back in June for half the amount. I submitted the second draw request for the remaining $9000.00 a week ago last Thursday to the title company/agency in my state of Minnesota. They called me last Thursday a week later and told me about the TBW fiasco and informed me that TBW was the lender of my customer’s project and that they could not receive funds from TBW and therefore would not release my draw. What are the odds I ever get paid? I can put a lien on the property but that isn’t going to put money in my pocket anytime soon and makes another victim out of my client. This mortgage had been closed in June but the funds were supposedly held in escrow at TBW. Will I ever see that money? Does FHA/HUD cover that money since it’s their program that I’m getting burned on? This is not my industry but now I get to learn all about it. Any help would be appreciated.

      • Rimhel, you might want to contact an attorney. I’ve only done a handful of 203k streamlined mortgages and TBW is not a lender that I work with. In WA, and with the lender I work with, after closing, the buyer/homeowner works directly with the lender to receive their draws–it’s not done through the title or escrow company.

        • We are also a contractor that has been waiting months for our payment of $14k that has been delayed due to our client’s loan being through TBW. I’ve been calling the B of A department that is handling this and have not once gotten a live person on the phone. I’ve left numerous voicemails and not one return phone call. Has anybody else had any luck???

  11. TBW took a lot of the “doo doo should have been subprime but we are going to make it FHA loans.” Not surprising. FHA has had a big problem with the subprime boilerrooms turning into FHA lenders and from what I understand, TBW took a lot of those loans.

      • Nope. However, I did warn a few agents/borrowers who have deals in process that turn times might become extended since all those TBW loans have to go somewhere. Sure enough, one of our investors sent out notice that times may increase due to the rush of files from TBW fallout.

  12. NAMB just issued this press release:

    For Immediate Release

    August 7, 2009

    NAMB Responds to Taylor, Bean & Whitaker Closing

    McLean, VA – August 7, 2009 – The National Association of Mortgage Brokers (NAMB) today expressed its concern over the loss of Taylor, Bean & Whitaker as a major channel for wholesale funding of loans. NAMB President Jim Pair, CMC, issued the following statement in response to this critical change in the market:

    “Losing one of the largest wholesale mortgage lenders as a channel for funding has already triggered a ripple effect throughout the industry, canceling tens of thousands of loan approvals and severely harming the consumer. Taylor, Bean and Whitaker’s failure to fund its pipeline of loans will cause consumers to be left waiting as originators attempt to transfer loans.

    “Because of the Home Valuation Code of Conduct (HVCC), loans will not be transferred without further costs forced on consumers as new appraisals will need to be ordered. The lack of portability caused by the HVCC, coupled with already slow turnaround times, will undoubtedly prolong the process to obtain a home or refinance. According to a recent National Association of Realtors ® survey, nearly 70 percent of NAR appraiser members say the HVCC has increased the time to close by more than a week. The HVCC must be repealed immediately for these loans to be transferred and funded without harming consumers.

    “New disclosure requirements under Regulation Z of the Truth in Lending Act (TILA) implemented by the Mortgage Disclosure and Improvement Act (MDIA) took effect July 30, 2009. Lenders are already raising concerns about the required waiting periods under the new rule and their effect on the unfunded loans by Taylor, Bean & Whitaker. NAMB urges the Federal Reserve to clarify the new rule, so that all lenders and wholesalers are using similar guidelines preventing more obstacles and time delays for consumers during the loan closing process.

    “The issue of Taylor, Bean & Whitaker has shed more light on problems in the marketplace. Together, the HVCC and the MDIA disclosure requirements are causing unintended consequences and slowing a housing recovery. NAMB will continue to work to ensure the consumer will not be hindered or delayed.

  13. We refinanced our mortgage with TBW couple of months back. Our auto deduction for aug did not get through. TBW’s website shows that the money has been paid but no money has been deducted from my bank acct.I have no idea whats going to happen to my loan. Would my rates change because of this?

  14. I have and had 4 mortgages with taylor bean and they were c rooked company, always overcharging. They never picked up there phone either.

    So happy this company will be shut down.

  15. Just received this memo from HUD:

    On August 4, 2009, The Federal Housing Administration (FHA) suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Florida, thereby preventing the Company from originating and underwriting new FHA-insured mortgages. 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. This means that, effective immediately, TBW will not be able to issue Ginnie Mae securities, and Ginnie Mae will take control of TBW’s nearly $25 billion Ginnie Mae portfolio…

  16. Per WSJ:

    “Bank of America Corp. is taking over the servicing of all Taylor Bean mortgages that are backed by the Federal Housing Administration”

    So those who are in the process of doing a 203k may work out okay–they just might have a little hiccup in their giddy-up.

  17. I had a conforming loan in the pipeline with TBW. I paid for an appraisal, credit check, etc. How can I get this money back?

  18. Hopefully, one of you might have an answer.. We had a construction to perm. loan with TBW. Two small draws were made and funds were dispersed. Now our broker is saying that we have to start over(This is a FHA Loan .Closed 5/29) Starting over means we will be paying double closing cost and have to go thru the whole process again. We are confused because it was a one time close and according to web info our money should be in escrow somewhere…. Any suggestions? Thanks Susie

  19. Here is the new payment and contact information for everyone that had a Taylor Bean & Whitaker home loan. http://www.hud.gov/news/consumer-guidance.pdf. All loans will be taken over by Bank of America. Their phone number is 800-669-6607. They are aware of the situation and very helpful. I was just told to send my payment to: Bank of America Home Loan Servicing Center PO Box 10334 Van Nuyns, CA 91410 Hope this will ease the minds of many homeowners out there. I know I was starting to worry when I could not reach anyone to make my TB&W payment.

  20. Thanks for posting all of this info, it helps. My wife and I have been dealing with TBW for 8 months.They have done some horrible things to us and have really put us in trouble.We thought we closed on a 2nd morg. on July 24th, and had to wait for the 3 day rule for funds to post, to bring us current, on our 1st and another property we own. It was all just a matter of 1 day, and we would have been fine! Now the title company told us they did not receive any funds from TBW.We now are in serious trouble and are worried we will have to walk away from both properties. If anyone has any advice please respond, we have called Bank of America, but no one knows anything yet. This is a nightmare, for us and I’m sure, so many other’s. Thanks, Chris

  21. Chris, I’m not sure what to tell you (or the many people who are contacting me) about their troubles with TBW. I recommend contacting your State regulators to see if they can be of any assistance and HUD. A lot will depend on what type of financing you have. It’s really too bad that more isn’t being published on the internet and news media to help the many who are in your situation. It sounds like nobody knows where to turn.

  22. This was just absurd to think I didnt even know about my own mortgage companies failings till I read Fox News on aug 14th. We have TB&W and if you have read the story on a NH man and his house the story is eeriely similiar to what I went through my first year in my home. The employees were rude and called us names, refused to accept mortgage payments due to late fees unpaid which they neglected to mention or post on our account for one month. It then turned into 3 m onths behind and a lot of late fees equalling 300 plus dollars for what I dont know. We have a VA loan, we arent late for 30 days after their posted due date.We barely saved our house by getting in the cash 3 days before the deadline. They made it absolutely hard to have us make our mortgage then were rude. Also when we purchased they asked for outlandish amount of paperwork for the underwriters and threatened to not sell us the home we are more than approved for also they approved us for a loan that was substantially higher than we could afford and our realtor (i swear was in on it too) try to only sell us homes we couldnt afford. It was a scheme and a scam and being our second home we thankfully knew to buy in our means and got a lovely home which we could afford except one month we came up a little short then got railroaded by TB&W.
    Anyhoo This company and its employees all deserve to get a swift kick in the pants for immoral unethical behavior and Im so sorry anyone else had to go what we went through and then some. I hope these MF get sued to the bones!

  23. I am concerned because my property taxes were not paid from my escrow, nor my insurance. I am paying out of my own pocket to meet the deadlines and prevent any further embarressment. Worried about my escrow…anyone had this problem?

    • Jennie,
      We have had the same thing happen to us. We are in the process of refinancing our home and TB & W had our origional mortage. The check they sent our insurance company, escrowed money bounced. We are waiting to hear from the company (Cenlar) who bought our mortage.

  24. Did anyone have a 2nd with TB&W and/or has anyone heard of 21st Mortgage? I sent both payments to Bank of America then find out today 21st mortgage (a lender for mobile homes) now has my 2nd. I have a twin home and have never heard of this company. My first went to Ocwen-never heard of them either.

  25. This is truly unfortunate that the customers of TBW were never informed of the issues facing the company. As my VA Loan was being serviced by TBW, I am now concerned about funds being sent to the company, and more importantly my escrow account that is currently being held by the company. As most individuals with these accounts, I can’t afford for my escrow account to be held as my taxes and home insurance will be due on 1 Oct 09 and I can’t even get information where my loan has been sent.

    Any advise to protect myself and our home?

    • Donald, it’s appears that TBW’s website has finally been updated with some information on where to make payments to (see below). Unfortunately, even if you have concerns about continuing to make payments, you are under contract. Hopefully this will be resolved before your taxes are due.



      P.O. BOX 10334
      VAN NUYS, CA 91410-0334





      1417 N. MAGNOLIA AVE.
      OCALA, FL 34475




      FOR OTHER QUESTIONS, PLEASE CONTACT TBW AT 1-888-225-2164 OR 1-800-530-2602.

  26. My s.o. and I split the mortgage payment, so we send two checks (even though I am the mortgage holder.) We are wondering what will become of the apparently uncashed checks, as well as the escrow account funds. Any replies appreciated. BofA gave me a web addy (bankofamerica.com/customers) that is not working, and insists the Sept 1 payment must be received by 9/16 to avoid late fees and impacting credit history.

    • Dawn, first of all, I probably would not split my payment w/two checks–one coming from you s.o. I’m sure your partner is a wonderful person…but what if a fluke happened and their check didn’t clear? YOU’RE the one in hot water with a potential late payment on your mortgage and damaged credit. FWIW–I know you’re not asking about that…but I can’t help myself sometimes. 😉 I recommend that your S.O. writes the check to you w/you writing the full payment with who you have your contract/mortgage/deed of trust with.

      Did you try the links/phone numbers in the comment above?

      I think it’s really pathetic what the clients of TBW are going through–I’m so sorry. Keep trying and do make your payment–you are under contract even if TBW or whoever is taking them over is not sticking up to their end.

  27. Thanks, Rhonda, for the prompt reply…I have to wait for business hours tomorrow to try to contact TBW. I am not encouraged that I will gain access to a live person, considering the comments I have read. I can state that I did a refi in March in which the paper went to TBW and I do not have any problems to report during this short time. My credit report already states states “transferred,” so something is definitely in the works there.

    BofA rep stated that so far, they had not received any funds from TBW, but I did not inquire as to the handling of escrow funds during this initial call…at least the hold time was very short.

    As to the s.o., we are currently in the process of merging appropriate household accounts, ya know, legal stuff first, then the hearts and flowers come last when you are in your 30’s and 40’s. He has a home based internet business selling intangibles; it was recommended by his tax consultant to pay the mortgage separately so he could continue his write offs prior to the actual marriage. Fortunately, we have full disclosure of credit history and finances, so no big surprises await.

  28. I am a TBW 203K streamline client. We closed July 30th. We were told BOA was supposed to be taking over our loan but then received a notice from RoundPoint instructing me to make payment to them. When I called RoundPoint to inquire about getting my escrow funds released to my contractors I was told that the escrow funds were not release by TBW and that they are having issues getting TBW to release escrow “they are hiding behind bankruptcy” is what the customer service rep said. I have two contractors that I need to pay and am paying interest on my escrow funds. BOA’s 203K department isn’t even taking phone messages, rather the message says that they are receiving an extremely high call volume and to try again later…and then they hang up. FUN!!!! I just feel badly that we can’t pay the guys that worked their butts off for us to get into our new home. In the meantime, I am looking into options for taking out a personal loan to pay them. I know my 203K is a Federally insured loan but this could take a while to sort out. Any ideas are welcome.

  29. I am in the same postion with TB&W, 203K loan and now my contractor is not being paid. I tried to get a personal loan, but could not. Any suggestons? My contractor is sending many threatening emails. I believe he should be paid, but I don’t have the resources. What on earth can a lawyer do for me? And can the contractor really keep coming after me? Filing a lien sounds like just paperwork, it won’t get the money. And, is it possible for me to lose my home in a few months?

    • the contractor has a certain time period where they could possibly file a mechanics lien against your property. This will cloud your title and may or may not be effective. You would need to seek legal advice regarding that.

      Have you contacted Bank of America? Here’s the info from Taylor Bean’s website:


      P.O. BOX 10334
      VAN NUYS, CA 91410-0334

      I would also try this (from their website): FOR QUESTIONS ABOUT YOUR FHA-INSURED LOAN, CONTACT FHA’S RESOURCE CENTER AT 1-800-CALL-FHA.

      • My loan is with RoundPoint, not BofA. I have talked to them every day for 2 weeks. The Sept 11th hearing to get TBW to release loan info resulted in (according to the article I read today on ocala.com) putting off addressing “some issues” until October, when there would be additional hearings. I was informed by RoundPoint they have never done 203K loans before, so it will be a challenge even when my loan is processed with them. I will obviously have to come up with $10,000 somehow and pay for the roof twice. Plus, extra principal. Perfect. Too bad my roofer is going bankrupt and reacting by throwing his anger my way. Lawyers cost money, too.

        I appreciate your advice, but it unfortunately does not apply to me.

        • Sorry I couldn’t help, Linda. I certainly don’t have all the answers. As I stated at the beginning of this post, I never worked with TBW. Thankfully I have other sources for 203k loans.

          Thanks for sharing what you’re going thru here so other readers know they’re not alone.

        • Our loan is now at RoundPoint too. I’ve spoken to them and they simply do not have our escrow funds. I am hoping that they will turn over the escrow funds to us directly when/if they become available. We are going to try to pay some money out of pocket to our contractors in hopes of avoiding lien’s being placed on our just purchased home. We are asking them to sign an agreement stating that if the escrow funds are paid to them directly that they will then reimburse us the amount we have paid them from personal funds. One of our contractors has said he is going to put a lien on our home. He is certainly entitled to do so. Will it get him his money faster than trying to work it out with us directly? Doubt it. A lien for $10K will not force you out of your house. No judge that looks at the circumstances is going to rule for you to liquidate your assets to repay $10K in light of everything that you are going through. Hang in there. I find this all so frustrating on so many different levels!!!!!! In the meantime, I am going to call my US Senators tomorrow to ask them to intervene. The impact that this is already having on average americans is too much, nevermind the impact that these late tax payments will have on cities/towns already struggling with tightened belts.


  31. Question:
    It turns out the money that was held out in escrow for my 203K contractor is no longer with escrow. It was transfered to Taylor Bean Whitaker 3 days after closing. I have been told that is highly irregular and that the Escrow company was wrong. Will it still be paid out by RoundPoint as a 203K payment when this big TBW mess is straightened out or do payments have to be made from escrow? I have contacted a lawyer who suggests I sue the escrow company.

  32. Linda and Patricia, I wish I had answers for you…I’m not in that end of the business and never originated any loans with TBW. This is a huge mess. I’m surprised that national media hasn’t picked up on this much.

  33. Just talked to RoundPoint, who has my loan from TBW, they said they expect to get full account information from TBW by Oct 1 and escrowed funds by Nov 1. I’m not holding my breath but at least that is progress. On another note, I’ve asked HUD if RoundPoint is responsible for payout of escrow funds as a FHA lender – including taxes, insurance, and 203K funds. Am waiting for their response. People – keep calling your US Senators and Congressmen/woman to get this mess cleaned up. As Rhonda stated, so surprising the national media hasn’t picked up on this. So, we need to mobilize and kick things into gear. Don’t know how to get in touch with your US Senator/Congressman/woman?Go to this link: http://www.congress.org/congressorg/home/ and click on “My elected Officials” search via zipcode on the right side of the screen.

  34. Behtany, regarding TBW loans going to RoundPoint, I just talked to FHA Nat’l Servicing Ctr. They said the reason my loan went to RoundPoint is that it is being treated like a conventional loan. My loan closed, but it never got insured with FHA. You might want to check and see if your loan was ever truly secured. I am being told I was not offically “approved.”

    Guess I’ll lose the home I thought I just bought.
    Good luck.

  35. Wow – what number did you call for the National Servicing Ctr? I’ll call them and check on my loan. If my loan is now a “conventional” loan then I shouldn’t have to pay the monthly FHA mortgage insurance then!!! This just gets crazier.

  36. Rhonda, I have Closing Documents. with an FHA case #. Everywhere I look, I see FHA loans going to Bank of Amer, not RoundPoint. And, BAC is right on top of handling everything. Processing payments and getting ready to pay 203K contractors. But RoundPoint can’t tell me anything! So I called FHA Nat’l servicing center 888-297-8685. They looked up my case #, which shows “uninsured.” And that, they said, is why it went to RoundPoint. The screen shot reads a sales price, an appraised value, “uninsured” and “203K improvement 1st lien.” There should be a loan amount, monthly payment and interest rate. All of those fields are blank. So, it “looks” like a conventional loan. TBW shut it’s doors before all documents could be recorded.

    RoundPoint has NEVER done 203K loans. No wonder they can’t tell me when my contractor will be paid.

    So, I was told by FHA Servicing to call the FHA Homeownership Center. 800-225-5342. Opt 3, opt 2. After being told they can’t help me, I asked for a supervisor. Twice. Insisted. The supervisor was confused about my situation and was going to call me back. He did, in fact, call me back. But I was afraid it was my roofers lawyer (a whole other story!), so I didn’t answer. He left a VM and a direct number to call him back Monday.

    Rhonda, I have an appt with a lawyer tomorrow. I have phone consulted with a couple, and none of them have been helpful. They don’t know what to do, and ask me what I want to do. One suggested I let the roofer put a lien on the house and that would give us 9 months before the roofer can file to foreclose so we can sue the Escrow company. The greed was dripping thru the phone. My roofers lawyer has drawn up a contract for me to sign and make 2 lump payments out-of-pocket for the roof. A “settlement agreement.” But, that implies I owe a debt. Do I?? My mortgage company does! And, does that mean that as a debt that has been settled and collected, do I pay the roofers attorney fees? Is my credit affected? Is that why I need a lawyer? Or, is it to ensure I have a loan? A house? Both? I’m begining to feel like a squatter in my home! It doesn’t help that my roofer is sending me inappropriate and harassing emails (until the lawyer stepped in).

    It’s a mess. Hopefully I will know more after I call the FHA guy, and after I meet with a lawyer. But, seriously, I doubt I will be any more informed. Limbo land. In the meantime….I am sending a payment to RoundPoint, and I got notice my taxes are due Nov 1st. Perfect.

    Thanks for letting me share.

  37. Linda, thank YOU for sharing. I wish I be of more help–this is unchartered territory. I suggest that anyone in your situation contact an attorney. Mechinics liens, which the contractors have a right (and a certain period of time) to file are one of the few liens which can take priority over your deed of trust/mortgage and may potentially lead to foreclosure if not paid off. Even though the liens may be small (in relation to your mortgage) they’re nothing to shrug off.

  38. Has anyone had any luck getting former Taylor Bean Whitaker 203K funds released from RoundPoint, Ginnie Mae or Bank of Amer for their contractor? Curious what is happening with others on this. Can’t seem to get any information on litigation timeline.


    • Linda, we are the contractor calling B of A on our client’s behalf, and can’t even get through to a live person. The message just says they are experiencing a high volume of calls and to try again later, and hangs up! We unfortunately are past the point of filing a lien because the work has been finished for months. This is so frustrating!!!

  39. Well at least you guys loan has been transferred lately Taylor Bean and Whitaker keeps calling me saying they still have my loan and I need to send a payment I am scared and do not want to but dont want to loose my home also I called Fha they say it was suppose to be transfered. I called Taylor Bean and Whitaker back they say the loan is pending transfer but has not been transferred thay do not even know when or where its going but i

  40. Unfortunate I am one of those who Taylor Bean still have my mortgage and its a secured FHA loan. I contacted FHA and they say they say TBW is not suppose to have my loan. After several rude phone calls I finally got someont to tell me whats going on. She say TBW is in bankruptcy court so all the loans that were not transfered yet were pending transfer. They do not know when my loan will be transfered but it will. I was also told they were not paying no insurance,or taxes due to them being in bankruptcy. I was told that until my loan transfer Ihad to still make payment to them. That the FDIC was overlooking this process. However I did explain to her that I was not sure about sending any money to a company that was told to cease and desist and she said she understood but doing this process I could loose my house to forclosure. Someone please help tell me what I need to do.

  41. Patricia, I am hesitant to give payment advice but I can tell you what I am doing. I am making payments to RoundPoint and printing my cancelled checks as receipts. I am also talking to customer service at RoundPoint every day. They are sick of me! If you go to TBW’s website and enter your loan number it will tell you where your loan has transferred to. Most of these loans have transferred without a hitch to Cenlar, Bank of America, Ginnie Mae. But a “handful” went to RoundPoint, which is not servicing my loan properly. I have been in touch with the FDIC and they are overlooking. They just don’t know what to do because they insure banks, not mortgage companies. A government agency is trying to figure out what to do….might as well solve healthcare too!

    I just emailed Senators Maria Cantwell and Patty Murray asking for assisntance. FHA started this disaster. Whoever flipped the switch to shut down TBW and Colonial did not consider the consequences to some of us.

    I am calling every government agency and representative I can think of. I even emailed GetJesse at King 5. No word from him….

    Hang in there.

  42. I just finished construction of my new home on my 5 acres of land. In the process of building I had an interim loan with a company and Taylor, Bean, and Whitaker was supposed to do my permanant financing. We were still building when the shutdown of TBW came about. My interim was pretty stunned……they tried letting another company find me permanant and it hasn’t worked out….NOW I am having trouble finding permanant financing….Any suggestions??? I have my new house I haven’t closed on sitting on my land!

  43. My son had a conv. unins mortgage with Taylor, Bean, and Whitaker. The problems talked about in some of your earlier postings are identical: no escrow disbursement, notating mailed payments made on the mortgage but not withdrawing any funds from his checking account, up to a 1-2 hour wait to talk to a TBW representative who told him “to keep sending his checks in and keep records of his payments”. He just received a 30 day notice of cancellation from State Farm Property and Casulty for non-payment (supposed to be from escrow) and now we have to assume that the property taxes won’t be paid on time. Please be aware that any phone call to HUD or FHA, or Bank of America, will be a complete waste of time if you have a conventional mortgage. I know, I am a lawyer and have tried every trick in the book, including Florida’s Attorney General Office, and have yet to find out what happened to the mortgage. My understanding is that they are in Chapter 11 bankruptcy proceedings which would explain why they cannot transfer the uninsured conventional loans, but are still accepting payments, presumably by the bankruptcy trustee and the hand picked “new management”. I’ll spare everyone the legal process under Chapter 11 of how the Trustee decides who are the priority creditors that get paid first from any assets. FYI, however, the list starts with the IRS, then ex-TBW employee unpaid salaries and benefits, and then eventually down to the unsecured creditors who usually get little or nothing. Our only hope is that they will be successful under the Chapter 11 “Reorganization” process and become a financially viable company again. Beware if you hear that they have begun Chapter 7 Bankruptcy proceedings, because the only option under Chapter 7 is liquidation of assets. Then we all get screwed and lawsuits are useless unless we can sue the TBW Corporate Agents personally. If so, get in line, but try to work out alternative financing once the loans are unfrozen. New closing costs maybe a bargain compared to what could happen. Has anyone else been successful with their conv. mortgage?

  44. Well guys Im still a TBW mortgage holder they have 3000 loans left to transfer they are negotiating with two other mortgage companies now to get those loans transfered. I spoke with a CEO at TBW and he say it shold be ion the next week I am hesitatent in sending money for all three months so I I sent one payment last week and will send another the first of the month and so on until I can truly fiqure out what is going on. I am kinda upset because Florida seems to be taking care of their own in this matter they are making guarantees only for the Florida residents but Im in the state of alabama and it seems no one hear is aware of what has taken place. I have called everyone and all Im being told is we were not aware but give them my information and they will try to find someone who could assist me. This is a bunch of mess we were not the ones that has caused this problem but Fha and everyone else should have handles this better. I have a FHA loan and its being treated as all the other loans. My taxes and insurance are due and with the depression we are in I cant afford to pay it thats why I was glad it was included in my mortgage payment.

  45. I would call your County Dept of Asseessments and notify them of the situation, that you are waiting for release of bankruptcy funds. TBW or whoever ends up with your loan should pay the late fees. I am still dealing with this disaster, as well.

  46. Rhonda, you’ve suggested getting in touch with “State Regulators” and “Local Authorities.”

    Who might those be? Who has local oversight of the real esate and mortgage business?


  47. Linda, it could vary from state to state. In Washington State, if your mortgage originator is a mortgage broker or a correspondent lender, you could start with the Department of Financial Institutions.

  48. Rhonda, My granddaughter had a loan with TBW, she sent in Aug payment to TBW. The check cleared her bank. Than BAC took over her loan, but they have no record of her Aug payment. Now BAC is telling her it is not their problem and she is now 30 days behind. She nshowed them that the Aug payment had cleared her bank.
    What can she do?

  49. We are facing the same situation, we made a payment in August and the check cleared, but when BOA took over the loan, they have no record of the August payment, so now we are delinquent 1 month on our morgage payment. We do have the copy of the cleared check and BOA has asked us to fax them a copy to thier research department. We called them last week and thier response was that the Federal Government has not released the funds yet and that thier was nothing they could do until otherwise. I have a VA loan, so this is what I get for defending this country.

  50. My HARP REFI was set to close with Taylor Bean on Aug 5. They sold my loan to OCWEN and they are telling me they are not a bank so REFI not an option. I cannot find another bank who will do the HARP refi unless they service the loan. Why would my loan which was approved for the Making Home Affordable Refinance plan be sold to a company who cannot help me?? I wish I knew who I could sure because now we are screwed.

    • We are in the same boat. First we were told that our loan went to Bank of America by somebody at TB&W when they first went under. We paid two months in cashiers checks to Bank of America referencing our loan number. Then we FINALLY received a statement from Cenlar in October. They told us that we were 2 months behind. Turns out we were given incorrect information and made our payments to the wrong company, although we were never mailed anything until that point. We had to track down the cashiers checks and put stops on both, with cost us 58 bucks. We finally almost had everything straightened out and we just received notification today that we are now going to OCWEN. We were trying to refinance as well and we are totally screwed! TB&W have really financially messed with many peoples lives and I wish they could be held accountable!

  51. I’m going to make a side comment about Bank Of America because our loan is all screwed up. BOA bought out loan from Country wide. We made the payments then were told we were behind, so we got caught up. It’s been months, maybe a year, and we just got our first statement saying we are behind about five payments.

    There is a disclaimer that “not all of our payments may be reflected in this statement.”

    What a mess.

    Let me say that I chose just to get the payments “caught up” because it was cheaper than an attorney, in my case, and in my opinion.

  52. I have read each and everyone of your stories, and as I read them I am thinking to myself, that is my story. TBW screwed us over, but wait BAC wants to give us a kiss with the screw. We paid our mortgage to with TBW before they where shut down, know BAC holds our mortgage and is saying we are behind in our payments. We just got the our insurance straighten out, BAC claimed they did not know they where suppose to pay it. There is a lot of shucking and jiving going on with these banks.
    Does any one have any solid advice that I can use to guide me through this jungle(BAC)

    • 1-800-call-fha

      I don’t know what else to suggest…thankfully I never worked with TBW and I’m so sorry to learn what all of you have been going through with little to no media attention.

  53. My situation with TBW, thankfully, has been resolved. But not without a LOT of anxiety, hard work and…here’s the biggie….fear.

    Roundpoint Mortgage took over my loan, but had no information other than my ssn and monthly payment amount. So they just flat-out couldn’t properly service the (203k) loan. I talked to them daily and they were, each and everyone, very nice, sympathetic and tried to be helpful. But the botom line was, they took over loans that require more work/attention than just accepting payments. Ie contractor payments, insurance, property taxes. I was all upset about NOT having BofA take over my loan, but now I’m happy to say RoundPoint has paid my 203k contractor and all is good. I even feel I owe them all a huge Thank You! So, there’s hope it will all get resovled….eventually. It’s the fear and mistrust of our banking system that has had me so anxiety-ridden.

    However, I got my senators involved, called FHA, and called FDIC regularly. I don’t know if all that made a difference and things would be worked out by now anyway, but I think the key is to keep making the calls, keep documenting and try to remember the people on the other end of the phone can only offer lip service. But the more you are heard, the more you will be remembered! I insisted on talking with supervisors and got some very helpful people involved.

    TBW went bankrupt. And then refused to cooperate. It was a perfect storm for consumers. The customer service people are just reading data entries. I started getting help when I wrote my senators that I was getting tired of being treated in terms of part of a “banking problem” and asked for help as an “individual consumer.”

    Try being calm and just keep hammering.

  54. Linda:
    My 203K is with RoundPoint and I couldn’t agree more – they’ve been really nice. However, I’ve been waiting nearly a month since they submitted my paperwork to the FDIC for approval to receive payment of our escrow funds (we paid our contractors out of pocket). How long did it take you to receive your funds (or, in your case, your contractors) after the paperwork was submitted to the FDIC? I’m just at the end of my rope and so frustrated. Dawn Adams has been our contact and she hasn’t returned a call or email over the past two weeks. Any ideas?

  55. I was put into an FHA in July 09′ and the loan was sold to TB&W. After they were suspended in Aug, my loan was transferred to Dovenmuehle. I have since tried streamlining only to find out my FHA loan isn’t endorsed (insured) so there is nothing they can do with the loan. I have tried every path imaginable to find out how this happened and how it can be resolved. Extremely frustrating.

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