Wednesday, August 19, 2009

Taylor, Bean & Whitaker Mucking Up Customers' Works?

The image above is a screenshot of part of the letter dated August 11 that Taylor, Bean, & Whitaker sent to its partners informing them that the U.S. Department of Housing and Urban Development had stopped it from servicing government-backed mortage loans. In essence, the company was out of business. The content continues, suggesting investors/partners "prepare to transition mortgage servicing from TB&W to another servicer."

When I first wrote about the Taylor, Bean & Whitaker mess after finding out why the company's website told me my mortgage loan was restricted, which meant I couldn't make a payment, I discussed my first encounter with TBW after Liberty Bank & Trust sold my loan to the mortgage giant. I was not happy about the service, how its agents seemed to take no responsibility for mishandling paperwork. Well, if you're a TBW customer dealing with its shutdown who must start sending payments to a new company, perhaps you should get out all your mortgage records and get ready for some drama.

According to, website of the Star-Banner, an Ocala, Fla., newspaper, a Cincinnati financial company has filed a lawsuit against TBW, claiming that the Florida-based company is mucking up the works, stalling on handing over important documents.
Since ceasing its lending operations and laying off most of its employees on Aug. 5, the Ocala-based company has refused to carry out specific - and contractually required - tasks to help one of its many business partners, according to a lawsuit filed Monday.

Cincinnati-based U.S. Bank National Association alleges that Taylor Bean has failed to provide access to documents, data and records pertaining to 1,936 residential home mortgage loans, totaling a balance of $180 million, that Taylor Bean serviced until it toppled. When Fitch Ratings downgraded Taylor Bean's credit rating to "unacceptable" on Aug. 5, U.S. Bank terminated its May 2007 agreement to have Taylor Bean service those loans.

U.S. Bank, acting as trustee on behalf of investors, also claims Taylor Bean is sitting on $2.4 million generated from those mortgages and refuses to transfer the money to the appropriate institutions. (
U.S. Bank National is not one of the entities listed by TBW as a place to send your mortgage payments.

Tennessee-based Henley Holdings LLC also took legal action against TBW. Last week a judge ruled that more than $4 million dollars of Henley's money being held by TBW be put in separate court account due to TBW's insolvency.

Shortly after the FHA/HUD revoked TBW's right to service loans under Ginnie Mae and Freddie Mac at the beginning of this month, federal agents raided its Florida headquarters, investigating alleged fraud. Mortgage customers became aware of the problems when the TBW website stopped accepting payments or when they noticed TBW failed to withdraw automatic payments from their bank accounts.

For all TBW posts at this blog, click this link.


msladyDeborah said...

It seems that this is going to become a full blown econmic drama.

Is there any institution that will be responsible for taking care of your payment until the mess is settled?

Vérité Parlant said...

Deborah, I've already sent my check to Bank of America, but I'm dreading the fallout with missing paperwork possibly because TBW may not be cooperating. God blessed me to get my loan under the right circumstances, but some of the people with the funky rising rates loans may have more trouble.

And oh, let's not forget the taxes paid in through the mortgage. Since the company's being check for fraud, I hope this does't become a case of missing money too.