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Taylor, Bean, Whitaker Files For Bankruptcy, 12th Largest Mortgage Lender In H1
The stunningly quick collapse of mortgage lender Taylor, Bean & Whittaker is over, with the only logical and possible conclusion: bankruptcy. The Florida mortgage lender, which in the January - June period was the 12th largest mortgage lender filed for bankruptcy in Middle District of Florida (case 09-07047). Neil Luria of Navigant, who was named as CRO, had this to say: "This is a very complicated business, and the speed of its
collapse has been stunning. Much remains to be done, but we are committed to creating and
realizing the value of the company’s assets."
Taylor Bean recently hit the news, after it lead an investor group that was ready to pay $300 million for failed bank Colonial, a lender, which was subsequently acquired by BB&T. The company, which had underwritten $17 billion of mortgages in the first six months of the year according to Inside Mortgage Finance, and $30 billion in all of 2008, was subsequently suspended by the FHA, has been in talks to get access to
about 100 accounts frozen by Colonial. At this point the company may have other, more pressing concerns.
According to the filed Cash Management Motion, TBW employed approximately 2,500 people across the country and employees another 1,500 people in various subsidiaries. The company's primary business involves:
- Origination, underwriting, processing and funding of conforming conventional and government-insured residential mortgage loans
- Sales of mortgage loans into the "secondary market" to government-sponsored enterprises such as Freddie Mac and Ginnie Mae
- Mortgage payment processing and loan servicing.
Now it can also add Liquidation. What is probably most concerning is that according to the same disclosure, at June 30, TBW serviced 488,000 mortgage loans having aggregate unpaid balances of $80 billion. Looks like some more fun for Freddie and Ginnie as they juggle the fall out from this, as TBW borrowers somehow get the impression that since their mortgage lender is bankrupt they never have to pay their mortgage again.
The primary reason for TBW's bankruptcy was given as the termination by Ginnie and Freddie to sell and service their respective $26 billion and $51.2 billion loan portfolios. That and some other disclosures about shady dealings with Colonial: "Historically, TBW and Colonial have had an extensive banking relationship. Colonial maintained virtually all of TBW's bank accounts, including approximately 108 custodial accounts necessary to TBW's servicing business. Significantly, Colonial was party to participation facility agreements with a cumulative purchasing capacity in excess of $3 billion, along with a $20 million line of credit, all of which were critical to TBW's business operations." Alas the relationship ended thusly: "Beginning on or about August 5, 2009, Colonial froze all of TBW's accounts and refused to accept deposits, honor checks, receive wire transfers, or permit disbursements." One wonders how much the other 81 bank failures YTD have impacted existing bank-mortgage lender relationships. If one listens to the news, likely none at all... until it is of course impossible to hide these.
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Looks like some more fun for Freddie and Ginnie as they juggle the fall out from this, as TBW borrowers somehow get the impression that since their mortgage lender is bankrupt they never have to pay their mortgage again.
interesting in regards to the other article on ZH today about defaulting refinances. I say upwards of 50% of newly refinanced TBW borrowers shitcan their payments and the over/under to receive a NOD is 12 months.
deadhead -- it is gonna be bad.
I am trying to pay a TBW mortgage online, but TBW announced suspension of online payments. The system no longer recognizes me, so I am unable to view my online statement. I don't get paper statements. I try to call the toll free number, but it is always busy.
Based on their status, I don't feel too good about just writing a loan number on the check and mailing it in.
46612...the clusterfuck doesn't completely suprise me given what has been happening, though the suspension of online payments is worrisome. In other words, you would think that they would have had some provision to continue this or have another vendor handle it. I fully understand your consternation about sending in a check and I would feel the same, i.e. is this damn thing doing to be credited properly!
I hope you have printed your payment history so that you have something to fall back on. Good luck
File a "Writ of Mandamus" (A request that the court mandate specific action/s) with the court handling the case requesting that clear guidance and access be provided to the mortgage processing clients of the firm and that all personal data & records of payment histories, loan specific documents and account specific documents necessary, reasonable or expected for your commerce with TBW be made available on an immediate basis to you. Suggest potential class action status if TBW cannot demonstrate they are providing every client the same quality access to their records, payment history and a clearly defined means to sustain payment crediting during the proceedings.
You can file this "Pro Se" or by yourself and type your request in plain paper and submit it to the clerk of Courts for the District in question if you cannot afford a federal attorney or would rather just do this by yourself. Call first and ask them the fee for an immediate hearing on your Writ request and if you can submit it via fax to aid in expeditious handling. Also request permission for a telephone lash-up appearance for expeditious handling by the court and those effected and to preserve all data. Ensure to include an accurate record of your attempts to satisfy your obligations. Get a screen capture if possible demonstrating inability to access account information and a phone bill log showing the minutes spent in futile attempt to contact TBW through their call center.
Go get 'em and save your records and let them know you care. Every moment you wait the stronger the case can be made not to grant your request since you are now reasonably aware of the situation you face with respect to engaging in reasonable & responsible commerce with the firm.
you're good Layne, no doubt about it. always enjoy your comments and viewpoints.
Thanx,
If #46612 really wanted to make the mark s/he could always request that all accounts be frozen as to interest, fees and scheduled payments as to the date of filing the bankruptcy since the firm does not have the capacity to fulfill its obligations as a mortgage servicer. This is really important since many clients are no longer "Debtors" of the firm, but are merely clients of its mortgage servicing arm. At least until the Court resolves the issue of the servicing arm to its satisfaction and Anon can fully engage in commerce with the new servicer with full access to payment history, security and crediting of payments and mortgage documents.
If, as I suspect one of the primary reasons BB&T payed what they did is so they could blanket modify all of these "questionable" mortgages they assumed from this firm and Colonial since they are so interlinked, with the associated gravy from the Fed, Treasury, the GSE's and FHA. There is also the issue of the high level of payments being collected that stick with the servicers under many of the current modifications as an important means of providing liquidity and assisting the banks with earning their way out of trouble. Further, I'd bet that many of the mortgage packets are missing, held by the authorities or lost making the process of responsible commerce a necessity and further complicating the situation for Anon and like situated individuals. Regardless, if Anon moves quickly s/he may well catch everyone unaware and get the records safeguarded and the position set early on.
Hate the situation, love the opportunities to engage.
Thanks Layne -- I'll follow-up along the lines that you suggest.
Don't worry about the agencies, they have infinite backing and will be dumped on more times than Love Canal before this thing is over.
I have a friend that worked at Taylor Bean, now she's part of the uenemployment statistic
u3. im hearing asia and europe cnbc shows refer to u6 more and more when talking about the US. anyone else noticing this?
You mean CNBC Asia/Europe actually has some sembolence of common sense?
It's like night and day (no pun intended) between those two stations and their hosts, for the most part. The intelligence -or integrity- seems to start at 6pm over there, and starts fading after midnight. I'll give the Europe show some kudos for a few good reoccuring guests in the studio.
The last one standing (or holding), when the music, is gonna get crushed!
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Surprise! Like no one saw this one coming? Shuh. Another wedge in the tree leading to the TIMBERRR factor. It's coming. Closer and closer every day.
can't believe we're talking trees already - those
green shoots sure grow up fast.
Was TBW going to buy the very bank that held its accounts? Seems odd an incestuous, kinda like Chunk from the Goonies...or is it Sloth?
The process of "consolidation" of the smaller fry into the new and improved TBTF continues apace. It will be interesting how the payment processing business is disposed of, to whom and for how much and under what conditions. Makes me wonder if JPM/Chase can do for TBW what they have done for WaMu's notes on reno and if the GSE's will be used in this way to provide a further funding stream for the TBTF.
TD - Pretty sweet eh? Trim 50%-85% of the payment stream from GSE payments for which the Fed is now primary debt owner and divert them to the processors at JPM, MS, WF and BofA IF KL can ever wake up and figure out how to be truly scandalous rather than Ben's punk. As a side note I wonder how Wilber Ross has managed to work his stream outta this one.
Any thoughts on why the indices dove around 1pm today?
ouch....no green shoots their either!
everywhere i look, no green shoots......
For all those interested: http://www.taylorbean.com/
FOR HOME MORTGAGE CUSTOMERS WITH A GINNIE MAE LOAN, YOUR LOAN WILL NOW BE SERVICED BY BANK OF AMERICA. BANK OF AMERICA CAN BE REACHED AT 1-800-669-6607. PAYMENTS SHOULD BE SENT TO:
BANK OF AMERICA HOME LOANS, LP
PAYMENT PROCESSING
P.O. BOX 10334
VAN NUYS, CA 91410-0334
There is more loan stuff on their site.
My mortgage was sold to BoA and as of today I find out that my escrow has not been given to them. Seems TBW is keeping that,so now insurance and taxes unpaid.
Also they have not sent any payment history.WTF
TBW SENT ME A REFUND CHECK OF ALMOST $4000. FOR EXCESS ESCROW FUNDS. THEN I GOT A NOTICE THAT MY MORTGAGE WILL BE HANDED OVER TO ANOTHER MORTGAGE CO. TODAY MY BANK INFORMED ME THAT THE CHECK FROM TBW BOUNCED! OUT $4000?
Our TBW escrow refund check bounced too. Unfortunately for us, a small check cashing company had cashed it for us and it was returned to them. Looks like we'll be paying them back out of our own pocket since we had already spent most of the money. We just found this out today (a weekend of course) so we really don't know yet what our other options are.
WE GOT THE SAME THING! We refinanced at the end of July and left TBW...tried for weeks to reach them to see how the escrow refund works...never reached anyone. Then last week we received a escrow refund from them. I deposited into my bank account and a day or two later, it came back as "UNPAID" and my bank charged me a fee for the!
Can't we contact Bank of America, who is taking over their loans?
Two years ago I remodeled my house and re-financed afterwards with TBW, I felt pretty good about the company since they kept 98% of their loans and had been around some 25+ years in Florida. I went 15 years and got what I thought was a decent rate of 4.75%. My wife has always mailed in our payments prior to the due date, however last month I suggested she get with the times and "pay online." I was able to access my account online today and now see that the loan was transferred on 8/13 but my payment for August does not show up nor my escrow amount to the tune of around $3800? I tried all day today to get a hold of someone at Cenlar as instructed on TBW's site to no avail. Not sure where or who to send my Sept payment since I don't see my Aug payment as made on the TBW website only deducted form my bank account? I guess I'll keep my eye out for a worthless escrow check in the mail, I'm sure this whole thing is going to end up costing me money and affect my credit. Where is the government help and bailout for the people that pay their bills!!
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