Taylor, Bean, and Whitaker Shut Down FAQs

Date Posted: 
Tuesday, August 4, 2009

The Federal Housing Administration (FHA) on Aug. 4, 2009, suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Fla. The Government National Mortgage Association (Ginnie Mae) also terminated TBW as an issuer in its Mortgage-Backed Securities (MBS) program and ended TBW's ability to service Ginnie Mae securities.

On Aug. 5, 2009, TBW announced that it would shut down all lending operations immediately.

What Does This Mean?

  • TBW is no longer originating, underwriting, or processing loans, effective Wednesday, Aug. 5, 2009.
  • TBW will not be able to issue Ginnie Mae securities, and Ginnie Mae will take control of TBW's nearly $25 billion Ginnie Mae portfolio.

Why Were These Actions Taken?

FHA and Ginnie Mae are imposing these actions because TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud. FHA's suspension is also based on TBW's failure to disclose, and its false certifications concealing, that it was the subject of two examinations into its business practices in the past year.

I Am A TBW Customer With An Existing Loan — What Do I Do?

If you have a loan with TBW you should contact TBW at 888-225-2164 or 800-530-2602 for more information about the status of your loan (whether TBW is going to continue to service the loan or if the servicing of the loan has been transferred to a new servicer) and further payment instructions. It may take a while to get through as TBW is operating with limited staff.

Online payments are not available at this time.

If you have recently received notification that your loan was transferred to a new servicer, verify the authenticity of the letter by calling the toll-free numbers above. Once you have verified the status of your loan, you should follow the instructions outlined in your transfer notice.

I Am A TBW Customer With A Pending Loan Application — What Do I Do?

If you have a pending loan application, TBW has indicated they will not be funding any loans — including loans which may have gone through the closing process up to funding. DFI has issued a Temporary Order to Cease and Desist against TBW, summarily suspending TBW’s consumer loan license and prohibiting TBW from originating any further loans. You should seek a new lender or contact your mortgage broker to seek a new lender.

FAQs For Borrowers With FHA-Insured Loans

The Department of Housing and Urban Development (HUD) has developed a Frequently Asked Questions (FAQs) document for TBW customers with FHA-insured loans.

HUD’s Consumer Guidance Regarding Taylor, Bean & Whitaker

FAQs For Lenders & Brokers

HUD has developed a FAQs document for lenders and brokers with guidance on what to do regarding the closure.

HUD’s Industry Guidance Regarding Taylor, Bean & Whitaker

FHA is communicating with other FHA-approved lenders to support the transition of loans from TBW to a new lender.

If you have additional questions, you may contact FHA’s Resource Center at 1-800-Call-FHA.