Skip to content
BOL Conferences
Page 2 of 2 1 2
Thread Options
#1229112 - 08/07/09 02:02 PM Re: Taylor Bean Whittaker rlcarey
Key Lime Pie Offline
100 Club
Joined: Jun 2002
Posts: 108
Louisville, KY
We were waiting on funding for a few loans that we sold and TBW has our original docs. What do you think will happen to the docs? Will we get them back?

Return to Top
Lending Compliance
#1229167 - 08/07/09 02:49 PM Re: Taylor Bean Whittaker Key Lime Pie
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
That is right up there with "Who do you think is going to win the Superbowl this year".
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1229250 - 08/07/09 03:30 PM Re: Taylor Bean Whittaker rlcarey
Rocky P Online
Power Poster
Joined: Jun 2003
Posts: 7,650
Florida
I understand that they have retained a small staff at each location to ensure that the documents get back to appropriate parties.
_________________________
Integrity. With it, nothing else matters. Without it, nothing else matters.

Return to Top
#1229258 - 08/07/09 03:35 PM Re: Taylor Bean Whittaker Rocky P
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
I was going to suggest you try to contact them. Their press release indicates they intent to continue servicing for everything allowable (obviously that could change) so I would think there are folks you can contact there to guide you as to what to do with in process files.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1229913 - 08/07/09 09:48 PM Re: Taylor Bean Whittaker rlcarey
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
We had two loans scheduled to close early next week. Both were underwritten and approved by TBW.

From a compliance stand point - I am thinking about Reg B - do we now have to send an ANN to the applicant indicating the application has been withdrawn? Then, start the process over with a new application, etc.? Since new disclosures would be required, and with MDIA, the loan cannot close for 7 days (which is a real issue since the sales contract stipulated it must close on the 11th, or the deal falls through).

Return to Top
#1230024 - 08/10/09 02:07 AM Re: Taylor Bean Whittaker Many Hats
complyyes Offline
Member
Joined: Apr 2006
Posts: 51
Midwest
We have 6 loans out that we table funded and TBW said that they will assign back to our bank. These were FHA loans. So I have a question: the MPI that FHA requires upfront (1.75%) can we keep that as an insurance policy (we are not buying an insurance policy from anyone we are calling this self insurance) and the monthly MPI that was disclosed on the TIL - again, keep that and hope for the best?

Return to Top
#1230034 - 08/10/09 11:25 AM Re: Taylor Bean Whittaker complyyes
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
I think you may be risking a Section 8 violation or a UDAP claim. Additionally, if these were suppose to be FHA insured loans and down the road the borrower would only qualify for some special deal because they had an FHA insured loan and that is not the case, you are looking at trouble there also. I think that it would be in any bank's interest that finds themselves in this position to be discussing the possibile actions with their attorney.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1230065 - 08/10/09 01:35 PM Re: Taylor Bean Whittaker Many Hats
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
Originally Posted By: Many Hats
We had two loans scheduled to close early next week. Both were underwritten and approved by TBW.

From a compliance stand point - I am thinking about Reg B - do we now have to send an ANN to the applicant indicating the application has been withdrawn? Then, start the process over with a new application, etc.? Since new disclosures would be required, and with MDIA, the loan cannot close for 7 days (which is a real issue since the sales contract stipulated it must close on the 11th, or the deal falls through).

Return to Top
#1230693 - 08/11/09 02:23 PM Re: Taylor Bean Whittaker Many Hats
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
Bump

Return to Top
#1230711 - 08/11/09 02:42 PM Re: Taylor Bean Whittaker Many Hats
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
I do not understand how you have a withdrawn application... applicant never withdrew their application prior to the approval.
_________________________
I don't repeat gossip, so listen closely...

Return to Top
#1230721 - 08/11/09 02:48 PM Re: Taylor Bean Whittaker #Just Jay
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
You can't treat this as withdrawn; applications must be withdrawn by the applicant. Your applicant thought they had a deal.

You need to look to the documentation given to the applicant to determine how obligated your bank is to close this loan, with or without a buyer for the loan. What did the approval letter say, what was the approval conditioned on?

Consider reputation risk as well. It is a tough situation.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1230730 - 08/11/09 02:59 PM Re: Taylor Bean Whittaker Kathleen O. Blanchard
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
I don't understand why both the original poster and Many Hats don't just find another investor to sell these loans to.

IMO, this should not affect the borrower in any way. They're closing an FHA loan with your FI, not TBW. They knew you planned to sell it and maybe even knew to whom but TBW is not the only FHA loan investor out there.

As far as the PMI situation, the borrower did sign up for a specific product and paid for the insurance. I'm not a lawyer so I think you should contact one because I'd be willing to bet your not providing them with what they paid for could be construed as a breach of contract on your part. Again, simplest solution is to find a different investor to sell the loan to.

Return to Top
#1230740 - 08/11/09 03:05 PM Re: Taylor Bean Whittaker #Just Jay
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
That's how the question was posed to me.

After thinking about it more, we obviously need to find another investor (which will take time). Since we will not do the loan in our own portfolio, I am thinking we need to send an AAN denial with "other" as the reason - "loan terms/conditions not offered."

Does that sound logical?

Return to Top
#1230754 - 08/11/09 03:10 PM Re: Taylor Bean Whittaker Many Hats
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
Have you already issued your applicant a committment? If so, I would consult with your attorney if this is the road you choose to take.

If you only have two loans, what is the harm in booking them yourself? I know TBW had looser FHA standards, so it may be difficult to find a new investor willing to take them, depending on their quality.

FWIW, we are booking our 23 TBW loans that are coming back. For us, it is a small price to pay versus risking reputational fallout.
_________________________
I don't repeat gossip, so listen closely...

Return to Top
#1230945 - 08/11/09 05:02 PM Re: Taylor Bean Whittaker #Just Jay
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,395
I just reread Many Hats post and something occurred to me. Many Hats, look to the HMDA Code sheet. Your BANK cannot withdraw an application. Only the applicant can withdraw.

In HMDA, the bank has the options of originating, denying or closing for incompleteness. Only the applicant can withdraw or decide not to accept the approval.

Return to Top
#1231310 - 08/12/09 02:49 AM Re: Taylor Bean Whittaker Truffle Royale
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
If there is anyone involved in this mess and have approved or closed loans that most likely will not be funded with TBW and you do not have your attorney actively involved, you are just asking for more trouble than you are in currently. This is not a proper forum to be looking for advice.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1231326 - 08/12/09 08:05 AM Re: Taylor Bean Whittaker rlcarey
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
I agree with Randy. Too often banks are asking regulatory questions when they have a legal liability issue that requires legal advice.
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1231359 - 08/12/09 01:07 PM Re: Taylor Bean Whittaker Kathleen O. Blanchard
#Just Jay Offline
10K Club
#Just Jay
Joined: Oct 2006
Posts: 14,390
Cheeseheadland
On a side note, this is an excellent learning tool to consider as we evaluate our vendor management programs.
_________________________
I don't repeat gossip, so listen closely...

Return to Top
#1231543 - 08/12/09 04:49 PM Re: Taylor Bean Whittaker #Just Jay
Kathleen O. Blanchard Offline

10K Club
Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Absolutely! Talk about needing alternate "critical" vendors!
_________________________
Kathleen O. Blanchard, CRCM "Kaybee"
HMDA/CRA Training/Consulting/Mapping
The HMDA Academy
www.kaybeescomplianceinsights.com

Return to Top
#1231967 - 08/13/09 12:38 PM Re: Taylor Bean Whittaker Kathleen O. Blanchard
Msunset Offline
100 Club
Msunset
Joined: Jan 2008
Posts: 145
We were in the process of approving a loan with TBW, we requested and paid for the appraisal fee. The client is asking us for the money for the appraisal. We have not heard from TBW in regards to this. Has someone else encounter similar situation? How have you have handled it?

Return to Top
Page 2 of 2 1 2

Moderator:  Andy_Z