Monday, August 10, 2009

Taylor, Bean & Whitaker Won't Let Me Pay My Mortgage, Closes Doors

Shortly after I closed the purchase of my house last year with a mortgage from Liberty, Bank & Trust, a minority-owned bank in New Orleans, Liberty sold my loan to Taylor, Bean, & Whitaker. Immediately I ran into trouble with lost information and was never sure who was at fault, Liberty or TBW, but I know that TBW's customer service was below standard in getting it resolved.

Finally they fixed the matter and showed me current. Now, despite attempts, I can't pay my mortgage because TBW is in hot water with the FHA and Ginnie Mae.
Taylor, Bean & Whitaker Mortgage Corp., the Florida mortgage broker that abandoned an effort to rescue Colonial Bancgroup Inc. last week, ceased processing mortgages last week, a day after the Federal Housing Administration and Ginnie Mae suspended doing business with the company. (BizJournals)
As a result of this, TBW has locked out its customers, apparently not only stopping new loans but also failing to process payments on old loans. Indeed, TBW is dead in the shark waters.
When privately held Taylor Bean, one of the largest independent home-loan providers in the U.S., abruptly closed its mortgage-lending operation Wednesday, the company said it wouldn't be able to complete or fund any loans in its pipeline of unfinished mortgages. It didn't say it would be leaving its existing borrowers high and dry, too.

... Taylor Bean spokeswoman Melissa Spata says on a recorded message on her voicemail that her last day at the company was Aug. 5 and that all calls should be directed to the main number. Calls to the main number are answered by an automated greeting, directing callers to select the appropriate extensions, with a maze of menus mixed with warnings of "heavy call volume." There is nothing that indicates a course of action for existing borrowers. (Wall Street Journal)
Like Robert Blake, the TBW customer in the WSJ article, which you can also read at NASDAQ, I keep getting a "your loan is restricted" message when I try to pay online. I definitely will not mail the payment in since it may go into a bottomless pit.

Federal agents raided TBW's offices last Monday, August 3.

Update: The FHA has a FAQ to answer questions for consumers with FHA loans serviced by Taylor, Bean, & Whitaker. Since this updated, information giving a mailing address has been posted. Read more here. In about two weeks, according to an earlier FAQ, customers with FHA loans should get a letter from Bank of America.



Roger C said...

Same things here! I've got automatic draft from TBW and it has been a week since they were suppose to draft if from my account. I can go for an early Christmas present of no mortgage payments for a few months!-)

le0pard13 said...

This sounds like a real mess. I sincerely hope this gets straightened out. Take care.

Vérité Parlant said...

Yep, very messy. Just learned from WSJ that Taylor, Bean, & Whitaker is close to bankruptcy. It made a lot of money servicing FHA loans, but now that the FHA has stripped it of its right to service its loans, TBW is falling apart.