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Taylor, Bean &Whitaker Files Chapter 11

Major FHA lender may liquidate assets

By Mark Huffman
ConsumerAffairs.com

August 24, 2009

A month ago the Ocala, Florida-based company was the nation's 12th largest mortgage lender, specializing in government-backed FHA loans. But them three weeks ago, FHA suspended TB&W from its program and opened a fraud investigation. Things quickly spiraled down after that – not just for the company, but for thousands of homeowners too.

Consumers like Eileen, of Hingham, Massachusetts, have found themselves completely in the dark.

“No information can be gained on any levels of the standing of my home mortgage. Emails sent never responded, phone numbers are busy, can not contact anyone at the company,” she told ConsumerAffairs.com.

“My experience with TBW has been much the same as most others,” Ronald, of Anaheim Hills, California, told ConsumerAffairs.com. “I just re-financed my home on August 2 and I can not login to make my payment and the phone number is always busy. I could not find any other numbers to call. So I e-mailed them and yet to my surprise no response! What can we do, are they out of business?”

Not yet, but that may come. The company said the government's action earlier this month was a crippling blow, forcing it to operate on a scaled down basis. Liquidation is a very real possibility, the company acknowledge.

Neil Luria of Navigant Capital Advisors was named as chief restructuring officer. In a statement, he said the speed of TB&W's collapse has been “stunning.”

It all began August 4, when FHA announced TB&W's suspension for failing to submit required paper work. Ginnie Mae also suspended the company as an issuer of mortgage securities.

A message on the company's Web site states Taylor, Bean & Whitaker is unable to either offer an online payment option or automatic payment deductions for its home mortgage customers. The company said no automatic debit payments have been made since August 10.

The company says home mortgage customers with a Ginnie Mae loan should contact Bank of America at 800-669-6607. Payments should be sent to:

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