I'm thinking this raid is probably a non-issue as far as the ongoing operations of TBW is concerned - with the exception of the funding lines.  Thought I would start a thread here to see if we can keep it updated with what might or might not be happening with TBW.  All I know is that the wire for all of my recent deals came through Colonial Bank.

You may want to read this:

http://www.hud.gov/news/release.cfm?content=pr09-145.cfm&CFID=19161847&CFTOKEN=43731000

	News Release  Information by State  Print version   HUD No. 09-145 Brian Sullivan (202) 708-0685 www.hud.gov/news/ For Release Tuesday August 4, 2009 FHA SUSPENDS TAYLOR, BEAN & WHITAKER MORTGAGE CORP. AND PROPOSES TO SANCTION TWO TOP OFFICIALS Ginnie Mae Issues Default Notice and Transfers Portfolio WASHINGTON - The Federal Housing Administration (FHA) today suspended Taylor, Bean and Whitaker Mortgage Corporation (TBW) of Ocala, Florida, thereby preventing the Company from originating and underwriting new FHA-insured mortgages. The Government National Mortgage Association (Ginnie Mae) is also defaulting and terminating TBW as an issuer in its Mortgage-Backed Securities (MBS) program and is ending TBW's ability to continue to service Ginnie Mae securities. This means that, effective immediately, 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. 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. "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," said HUD Secretary Shaun Donovan. 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." Ginnie Mae President Joseph Murin said, "I would like to reassure TBW's customers whose loans serve as collateral for Ginnie Mae securities that, although this action will result in a new servicer, the transition will be seamless for them." TBW's immediate suspension is for a temporary period pending the completion of an investigation by HUD's Office of Inspector General, an ongoing review by the Department's Office of Housing, and any legal proceedings that may ensue. TBW is the third largest direct endorsement lender of FHA-insured loans and the eighth largest issuer of Ginnie Mae mortgage-backed securities. FHA decided that TBW's immediate suspension is in the best interest of the public and is necessary to protect the financial interests of the Department. TBW may appeal its immediate suspension by submitting a written request for a hearing before an Administrative Law Judge within 30 days. Such a request will not delay the action FHA is announcing today. In conjunction with TBW's suspension, HUD sent notices of proposed debarment to TBW's Chief Executive Officer, Paul R. Allen, and TBW's President, Ray Bowman. Mr. Allen's proposed debarment alleges that he submitted false and/or misleading information to Ginnie Mae regarding TBW's delay in submitting its audited financial reports for fiscal year ending on March 31, 2009. Mr. Bowman's proposed debarment alleges that he submitted two false certifications to HUD on TBW's Yearly Verification Report. Mr. Allen and Mr. Bowman have thirty days to contest the proposed debarments. ### HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. Ginnie Mae is a wholly-owned government corporation within the U.S. Department of Housing and Urban Development. Ginnie Mae pioneered the mortgage-backed security (MBS), guaranteeing the very first security in 1971. An MBS enables a mortgage lender to aggregate and sell mortgage loans as a security to investors. Ginnie Mae securities carry the full faith and credit of the United States Government, which means that, even in difficult times, an investment in Ginnie Mae is one of the safest an investor can make. More information about HUD and Ginnie Mae is available on the Internet at www.hud.gov, espanol.hud.gov and www.ginniemae.gov
	Back to Top    FOIA Privacy Web Policies and Important Links  Home U.S. Department of Housing and Urban Development 451 7th Street S.W., Washington, DC 20410 Telephone: (202) 708-1112   TTY: (202) 708-1455 Find the address of a HUD office near you

okay, so I have a few deals to resubmit elsewhere I think.  Where can I go for 100% VA Cashouts or manuf homes?

Well, I guess my FHA 3/1 pre-approval with the 48% back ratio needs a new home.  700+ FICO & 50k in reserves.  I know a lender in NJ that does not hold to 31/43 on these.  This is bad for a lot of community banks that use them.

So what were the big guys at TBW thinking.....they provided SISA financial audits....didn't they know FHA would pull a 4506-T.........sorry couldn't resisit.....

LOL Bobby.

I don't use TBW...certainly not good for the industry or their employees----but?  Maybe increased turn times at more Lenders?

MisterVA:

know a lender in NJ that does not hold to 31/43 on these.

Am I missing something here?  I think most FHA wholesalers are snapping this deal up!  You're getting an Accept right?

I originate for a Community Bank and good portion of my pipeline is with TBW... So many of my files have finally come out of underwriting and are very near closing or "were" very near closing.  I hate the fact that my pipeline is shot for this month now, but worse than that I hate that all of these customers are now going to be subject to worse case pricing by submitting to another lender in addition to being put back in line for underwriting. 

I wish there was a way that the regulators/examiners could allow only the loans that are currently registered and locked with TBW (not accepting any new business) to be underwritten and examined or audited by their officials thouroughly for the next 30 days.  This would allow them to close and fund under the terms they were originated.   These files could be the cleanest files TBW has sold in years! LOL!!  But seriously, if the HUD has suspended TBW in the "best interest of the consumer", wouldn't it make sense to allow those loans that are already in process to continue "in the best interest of the consumer" ? considering what the alternative is going to cause...

I know it's wishful thinking...I just wish I didn't have the majority of my pipeline placed at TBW.  You all think of me as I begin calling my borrowers to explain

Socialism anybody?  Privately owned mortgage bank not being run now by the government gets shut down...hmmmmm...

Watch out private sector, here comes big poppa socialism!!!

IT is not socialism, it is the big ones keep getting bigger.

Bigger banks are able to scoop up smaller ones for pennies on the dollar.

Where are the anti-trust people??

Less and less choices.

I have a mortgage that is supposed to close tomorrow morning, a conventional deal. The title company just called me this morning and said they are receiving notification from underwriters that they should not close any Taylor, Bean, and whitaker deal. Yes, I am aware their funding has been horrible lately, but does this mean that this deal cannot go to closing tomorrow morning and that I must submit it to another lender.

This will be my last deal w/Taylor Bean regardless, but I need to know if this deal is done and I need to resubmit somewhere else.....

Curt Sandfort:

I'm thinking this raid is probably a non-issue as far as the ongoing operations of TBW is concerned

ummmmm, can I please go back and edit my first post here?  In the words of the great Homer Simpson  "DOH!"

the big banks didnt come in and raid/close this bank, the government did.  Socialism courtesy a la Obama. 

Mike,

Per my TBW AE, they will be issuing a letter today that will tell us how files in processing will be handled.  If your title company is not closing any TBW files regardless, that is a seperate issue.

Curt Sandfort:

ummmmm, can I please go back and edit my first post here?  In the words of the great Homer Simpson  "DOH!"

You are absolved of any wrongdoing... everyone has a Homer moment now and then...

When a bank lies about it reserves and gets raided, that is not socialism. That is regulation.

I wish people would research true meaning of socialised government.

I do not believe every citizen would give up their personal property rights to become a socialised government. And I do not believe that Congress and Supreme Court would make that happen.

Mike:

I have a mortgage that is supposed to close tomorrow morning, a conventional deal. The title company just called me this morning and said they are receiving notification from underwriters that they should not close any Taylor, Bean, and whitaker deal. Yes, I am aware their funding has been horrible lately, but does this mean that this deal cannot go to closing tomorrow morning and that I must submit it to another lender.

 

This will be my last deal w/Taylor Bean regardless, but I need to know if this deal is done and I need to resubmit somewhere else.....

There are numerous reports from news sources right now saying that Taylor Bean is closing operations today. I would say your loan is not closing tomorrow, and that you are going to need to seek out another lender ASAP. As for your last dealing with Taylor Bean, I don't mean to be crass, but this is everyone's last dealing with TBW if they are closing the doors. Sorry to hear about your situation, hopefully you can find a new home for the loan ASAP, I have heard others say they are getting emails from lenders looking for files that were at TBW to close them right away. Similar things have happened over the past year or two as other lenders have closed.

AC

TAYLOR BEAN MUST CEASE ALL ORIGINATION

The best thing that could ever happen to your customers is to have dodged the TBW bullet. Their servicing practices are/were borderline criminal (in my mind) so if your pipeline was full of sub prime loans, your customers will thank you later should they ever get into trouble with their mortgages.

TBW did sub prime loans?