Department of Financial Institutions
Regulator Issues Order Against Taylor, Bean & Whitaker

Press Release Date:  Tuesday, August 18, 2009  
Contact Information:  Kelly May, Public Information Officer
502-573-3390 x252
800-223-2579 x252
kelly.may@ky.gov
 


   FRANKFORT, KY (Aug. 18, 2009) – The Kentucky Department of Financial Institutions (DFI) has issued a cease and desist order against Taylor, Bean & Whitaker Mortgage Corp. (TBW).

   The order prevents the mortgage company from issuing new loans and prohibits soliciting and advertising. In addition, the company is ordered to stop foreclosure proceedings on Kentucky properties. DFI is requiring the company to continue to service existing loans in the best interest of the customer.

   TBW was notified on Aug. 4 that it was no longer an approved lender for the U.S. Department of Housing and Urban Development (HUD), Freddie Mac and Ginnie Mae, making TBW unable to fund any mortgage loans currently pending in its pipeline. The suspension was based on evidence of misrepresentations, including failure to report a 2008 enforcement action by DFI. 

   “The provisions of this order will protect the interests of Kentucky consumers who were doing business with TBW,” said DFI Commissioner Charles Vice. “Those who were in the process of obtaining loans should be able apply for a loan elsewhere. Additionally, existing TBW customers should know the DFI is working to ensure their loans will continue to be serviced in an appropriate manner.”

   Customers who applied for a loan but did not close:

  • If your TBW loan was being brokered, your broker should be able to seek an alternate lender.
  • If TBW was to be your lender, you should start the application process with another lender.

Customers who already had a loan with TBW before Aug. 4:

  • Continue to make payments on time. TBW is continuing to service some mortgage loans. Other mortgage loans are now being serviced by Bank of America, Saxon, Ocwen and Cenlar.
  • If you are unsure of where to send your payment, or have other questions, call TBW at 888-225-2164.  If your loan is delinquent, call 800-530-2602.
  • Although there has been a delay, TBW will be cashing mortgage payment checks they receive, so please budget accordingly. TBW says it will not charge late fees or make credit bureau reports for 60 days. 
  • Online mortgage payment and automated withdrawal services with TBW have been terminated. Payments should now be sent by mail.

   TBW is a Florida-based mortgage company and has been licensed in Kentucky since February 2007. Prior to that, they issued loans through an exemption. In 2008, DFI found TBW was using unregistered loan officers and assessed a $150,000 fine, of which $75,000 was paid to DFI and the balance went to the Nationwide Mortgage Licensing System.

   Both the 2008 and 2009 orders can be found on DFI’s Web site at www.kfi.ky.gov/legalresources/enforcementactions/mortgageea.htm. TBW has the right to appeal DFI’s Aug. 17 order.

   To file a complaint against TBW, submit the complaint form found online at www.kfi.ky.gov/complaint/ficomplaint.htm or call 800-223-2579.

   DFI is an agency in the Public Protection Cabinet. It supervises the financial services industry by examining, chartering, licensing and registering various financial institutions, securities firms and professionals operating in Kentucky. DFI’s mission is to serve Kentucky residents and protect their financial interests by maintaining a stable financial industry, continuing effective and efficient regulatory oversight, promoting consumer confidence, and encouraging economic opportunities.

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