Tuesday, Sept. 1
Written 10 a.m. EDT
MORE TBW FALLOUT: Last week I asked to hear from people who have been inconvenienced by the demise of Taylor, Bean & Whitaker, or TBW. The prominent Ocala, Fla.,-based mortgage lender closed up shop abruptly last month after it was raided by the FBI.
I heard from a few people, not a lot. And they describe more than one type of problem. One homeowner was about to refinance with TBW, when he was informed "from a third party" that his closing had been canceled. He didn't say who the third party was, but whoever it was, the third party didn't return his call.
Then there are the escrow payoff problems. When you sell the house or refinance the mortgage, there usually is money remaining in the old loan's escrow account. (The escrow account is the stash of money that is used to pay insurance and taxes.) The money remaining in the escrow account is supposed to be refunded to the former borrower.
Some TBW customers got escrow refund checks, but the checks bounced.
One reader writes: "I have called the Ocala Chamber of Commerce, Better Business Bureau, Florida Attorney General, OFR -- Office, HUD -- Inspector General, FDIC, Federal Reserve, Bank of America, Cenlar, Saxon, Federal Trade Commission, and the list goes on, with no answers. I am wanting to know when and where, will a solvent check arrive that returns my escrowed money for taxes and home insurance."
Mortgage servicers are lightly regulated. That's what Americans want, apparently, because we like to vote for politicians who promise to ease regulations on businesses. In this case we have a servicer that's largely "regulated" by the laissez-faire state of Florida, and which has sought refuge in federal bankruptcy court. This skein isn't going to be easy to unravel.
I'll check into it. Meanwhile, keep those TBW horror stories coming. Let me know if I can interview you and identify you by name.