Mortgage Lender Taylor Bean Left Homeowners Confused
Mortgage lender Taylor, Bean & Whitaker Mortgage Corporation, which shut down its operations in August, left many of its customers in disarray.
It has been weeks since its shutdown, but many of its borrowers still do not know where they should send their monthly home loan payments. Many of them are also concerned about the payments of their taxes and their homeowners insurance policies.
Before its closure, Ocala, Florida-based Taylor, Bean & Whitaker was the 12th biggest home loan provider in the U.S. It was also the third-biggest provider of loans guaranteed by the Federal Housing Administration in June, based on data from trade publisher Inside Finance.
One of the states significantly affected by the bankruptcy of Taylor Bean is Illinois. Across the state, 25,000 homeowners are asking a lot of questions and expressing a lot of concerns about their mortgage loans.
Alan Anderson, the chief counsel for mortgage banking at the Illinois Department of Financial and Professional Regulation, said that the process of resolving all homeowner concerns in the state is a massive undertaking.
Meanwhile, mortgage lender Taylor Bean said it has not processed automatic debit payments since August 10. According to Alan Anderson, Taylor Bean borrowers are confused because they were not clearly informed about which servicer is taking over their mortgage. They are also bothered about letters of loan reassignment from various servicers.
Based on information from the web site of Taylor Bean, borrowers with Ginnie Mae home loans should make their payments to Bank of America. Freddie Mac borrowers are advised to pay to Cenlar FSB, Ocwen Loan Servicing or Saxon Mortgage, depending on the status of their loans.
Last week, the state discovered that Taylor Bean has not stopped servicing almost 1,800 home loans in Illinois. After participating in 14-state legal action against Taylor Bean in June, the state of Illinois sued the lender again last week.
Among other accusations, the state claimed that Taylor Bean inaccurately informed over 15,000 homeowners in Illinois that their home loans were already in default.
The state also instructed Taylor Bean to update the state daily with a list of all home loans being moved to other servicers. Taylor Bean must also make sure that all new servicers give a two-month grace period for borrowers to make their loan payments without any assessment of late fees.
Lastly, mortgage lender Taylor Bean was also told not to proceed with any foreclosure in Illinois until further instruction is provided.
