Taylor, Bean & Whitaker Suspends Online, Debit Payments
Taylor, Bean & Whitaker Mortgage Corp. (TBW) late Friday told borrowers it will no longer accept online payments or automatic payment deductions on mortgages it still services. In fact, Taylor, Bean & Whitaker has processed no automatic debit payments since August 4 and asked its borrowers to submit payments via direct mail. The US Department of Housing and Urban Development several weeks ago suspended TBW from originating FHA loans on the grounds of "irresponsible lending practices." The company said in a media statement that it will continue operations "in a reduced capacity" until it transitions all its loans to new servicers. “Regrettably, TBW will not be able to close or fund any mortgage loans currently pending in its pipeline,” the lender said in a statement on August 5. “TBW is cooperating with each of the agencies with respect to its servicing operations and expects to continue to service mortgage loans as it restructures its business in the wake of these events.” Moody's Investors Service quickly placed TBW's servicer rating on review for possible downgrade as the loss severity of its residential mortgage-backed securities (RMBS) looks to increase. Servicing rights for TBW's Ginnie Mae portfolio, however, moved to Ginnie's master sub-servicer, Bank of America (BAC). TBW closed last year as the 14th largest mortgage servicer in the United States with $76.35bn in total servicing, wedged between MetLife Home Loans ($88bn) and BB&T Mortgage ($74bn) . Write to Diana Golobay.