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On August 4, 2009, the third largest direct endorsed FHA lender was shut down from funding FHA mortgage loans.  Taylor, Bean & Whitaker (TBW) of Ocala, Florida had their operations immediately shutdown by the Federal Housing Authority.  The attached TBW press release can be found at this link:  http://ml-implode.com/info/TBW.pdf

FHA Commissioner David Stevens said, “TBW failed to provide FHA with financial records that help us to protect the integrity of our insurance fund and our ability to continue a 75-year track record of promoting, preserving and protecting the American Dream. We were also troubled that the Company not only failed to disclose it was a target of a multi-state examination and a separate action by the Commonwealth of Kentucky, but then falsely certified that it had not been sanctioned by any state. FHA won’t tolerate irresponsible lending practices.”

HUD Secretary Shaun Donovan said: “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.” 

So what does this mean for Rhode Islanders who currently have their service with Taylor, Bean & Whitaker (TBW) or are in the process of a new FHA loan application  which is being underwritten by Taylor, Bean & Whitaker?

If you are an existing TBW customer, continue to make your scheduled payments until notified by Taylor, Bean & Whitaker or an authorized agency.

If you have a new FHA  mortgage loan application in process,  the first thing you should do is contact your loan officer to find out if your loan was being underwritten by Taylor, Bean & Whitaker (TBW). He/she will be able to tell you.

If it was, you may have to start the whole process over whether you are purchasing or refinancing; no matter how far along in the process you were.  If your current lender cannot help, please contact me at http://www.guaranteedrate.com/lyndamckenzie.

The good news is if you have already paid for an FHA appraisal, the appraisal follows the property for six months.  FHA assigns a case number for the property.  You may be able to get the appraiser to “assign” the appraisal to a new lender depending on the age of the appraisal.  Some will do it for free and others may charge a small reprint fee.

It is also rumored, but not confirmed, that Bank of America (BOA) may be taking over TBW’s 203k portfolio.  It is estimated that this process will take up to 3 weeks or longer to complete. If this is the case, expect to receive written notification from Bank of America.

If you are in need of a FHA mortgage, call me today.  I would be happy to help.

Lynda Mckenzie
RI license#137627/NMLS#137627
Direct:  401-524-9796
E-mail: lmckenzie@guaranteedrate.com
Web:  http://www.guaranteedrate.com/lyndamckenzie
RI Licensed- 20102682LL