Taylor Bean and Whitaker

Question: My mortgage is through Taylor Bean and Whitaker which has just been implicated in a fraud scandal, (which made headlines in August.) When no payment was deducted from my husband's bank account in September, we made a call to TBN and were told that the company has ceased to operate, but that we should send a check to the Ocala, FL address. I'm afraid to send my mortgage company now knowing that it has "Ceased to operate," but am equally afraid of missing a mortgage payment. How should we proceed? Jessica, East Waterboro, ME

Answer: You're instincts are right. Before you do anything you need to see who is now responsible for servicing the mortgage. There has been a great deal of confusion since Taylor Bean went under, but it looks like government agencies have straightened it out.

The FDIC and Federal Reserve each offer Taylor Bean and Whitaker customers a hotline to call for more information. The FDIC number is 1-877-275-3342. The Federal Reserve's hotline is 1-888-851-1920.

Basically, if the loan was insured by the Federal Housing Administration, Veterans Administration or USDA's Rural Development, it was probably securitized (turned into a product that can be sold like a bond) by Ginnie Mae. Bank of America has taken over the servicing of government-insured or guaranteed mortgages securitized by Ginnie Mae. The Ginnie Mae website offers more information, and you can get the BofA address. Other TBW loans were securitized by Freddie Mac. It has arranged for Cenlar FSB, Saxon Mortgage Services, and Ocwen Loan Servicing to assume responsibility for the loans. It's website is freddiemac.com.

So, check out where the payment should go first, and then write the check..

About the author

Chris Farrell is the economics editor of Marketplace Money.
Log in to post13 Comments


I spoke with someone at Taylor Bean and Whitaker she advised me all loans will be transfered that they are all pending they did not know what exact date but she said they would transfer.They do not know who will get the loans that are left but until then we will have to make payments to them As I explained to them I was not sure about that but I would send enough to keep me out of foreclosure.She also notified me TBW would not be making any insurance or tax payment due to all escrows being froze. I stay in Birmingham alabama and dont noone seem to know whats happening. You would think this was only affecting florida what about the other states what are we to do. Florida is taking care of florida what about us

The cease and desist protects only florida homeowners you can read it on office of fin regs website so potentially they could hit non florida residents with late fees which is why in a broader scope I think its dangerous advice but agreed if I was I florida and knew I couldn't be whacked with late credit reporting I too would hold onto my payments. I asked TBW if I could withold my escrows since my taxes went unpaid and they said no. Further proof that communication there is a mess and seems they are making up rules as they go.what a nightmare for all of us. Keepingf my fingers crossed they go into a liquidation and fold. Then at least we will no for sure we will get a new lender but as of today they are still in chapter 11 and are trying to reorg

They still service loans (35k) probably left that are backed by Wells Fargo and will probably get moved sometime but not sure when.

There are some additional TBW loans that were not Freddie or Ginnie loans. Their portfolio loans appear to have gone to RoundPoint Mortgage Servicing in Charlotte. I believe part of this portfolio was held by Colinial Bank which was seized by the FDIC.

what about our escrow checks?

lots of people- including me- were issued escrow
refunds from our overages- and when I cashed it,
it bounced

when, if ever will we see these funds?

in addition to the government ceasure and bavkruptcy,the State of Florida has ordered TBW to cease ALL late charges and foreclosures so my advice doesnt sound all that dangerous. I re-itterate ,save your payments, as in put in the bank until you get a letter from BofA or whoever on the servicing of your loan.All loans will be transfered,all loans will get a letter from the new servicer. TBW is as trustworthy as Bernie Madoff.
This is what I would do, but I would also expect a letter from BofA or other servicer very soon.

those numbers you posted are useless, the FDIC and Federal Reserve have given no useful information for home owners still stuck with TBW. In fact its because the FDIC rushed and froze TBW's accounts that we are in this mess.Accoriding to TBW, the wells fargo loans are not being transfered

My TBW loan went to Freddie Mac, serviced by CENLAR. My September mortgage payment and my escrow funds, however, were frozen. Escrow has been released. September mortgage money is still unavailable. Taxes were not paid. CHECK TO SEE IF YOUR INSURANCE AND TAXES NEED TO BE PAID because the servicers are getting around to it pretty slowly.

I tried to call the FDIC. They gave me a phone number for Wells Fargo, but when you call it, it's TBW #. I am sill confused. 3 months have passed, no notification's from anyone. If I call TBW, they state "send us your payment. we have not stopped business". I am going to hold on to my money until someone can tell me different, and not TBW.

I was a Quality Control Underwriter for TBW until 2008. The Government should have shut down TBW in 2003.
At any rate, I understand Bank of America will be servicing these loans. I would SAVE(NOT SPEND)your total mortgage payment(s) and wait until you get a letter from your NEW loan servicer. Once you have recieved something from BofA or who ever else might service your loan and verify they are ligit. ie; they will know your old loan # your balance, payment amount etc. Do not send your $ to TBW, Farkas might use it for fuel for his private jet and fly to Zimbabwe or something.


With Generous Support From...