Friday, September 4, 2009

Good Bye Taylor, Bean & Whitaker. Hello Bank of America

My old mortgage company, Taylor, Bean & Whitaker, is dead but fighting it. I've chronicled its troubles at this blog, allegations of fraud, bankruptcy filing, etc.

As instructed by the FHA, I sent my payment to Bank of America and waited for a letter from the financial titan. Later the TBW website had similar instructions.

My check to Bank of America cleared last month a few days after I overnighted it. On Monday, as promised by the FHA, I received a letter from BOA, telling me how to register for its site and make payments or how to send the payment via snail mail.

Whew! I was dreading the potential mess because I was sure I might see some drama. I said in my post about U.S. Bank National Association's complaint that TBW's been mucking up the works, not handing over customer information to TBW partners. It seems Bank of America has what it needed for my loan and others, perhaps because the FHA is directly involved with that part of the transfer and TBW executives, defending themselves in the Federal Government's fraud investigation, are trying to avoid jail.

However, a Wall Street Journal says the FDIC now has choice words for the embattled mortgage company.
Taylor Bean "is holding hostage hundreds of thousands of homeowners, and each day of delay is causing mounting and growing harm to individual homeowners" who are unable to get information related to their mortgage loans, the Federal Deposit Insurance Corp. said Friday in a bankruptcy court filing.

The FDIC, which is the receiver for Alabama's recently shuttered Colonial Bank, says Taylor Bean is refusing to transfer vital information related to its servicing of mortgage loans.

"As a result, while hundreds of thousands of homeowners continue to make their monthly mortgage payments, those payments are now sitting in limbo," the FDIC said in the court filing. (WSJ)
When news of TBW's insolvency first broke last month, experts said Taylor, Bean & Whitaker's closing would be a good case study to see what happens when financial institutions go under, leaving homeowners in the dark.

Colonial Bank is the institution that TBW tried to bail out. When the deal fell through and TBW received a bad credit rating, the Feds descended on its Florida headquarters seeking data on potential fraud. It was "the third largest direct endorsement lender of FHA-insured loans and the eighth largest issuer of Ginnie Mae mortgage-backed securities," according to an FHA news release.

1 comment:

Pop Art Diva said...

God this mortgage mess has issues that still ripple through our financial lives. Ugh, what a mess.

Lookin' for your OSF, but enjoyed this post (well, maybe that's not the right word for it, lol)

Mine's up when you get a moment: Going Steady in the Sixties - Happy Together

Happy Labor Day!