Taylor, Bean & Whitaker Knock Themselves Out (of TPO)

mortgage underwriter at 07:08 2009-02-18 said:

For all of you out there that are thinking Taylorbean is now going out of business think again, the TBW annoucement, is just part of the whole mortgage insurance companies not insuring TPO loans this is nothing new, if you are reading this then I am sure you also read the post last week regarding PMI and RMIC. This has nothing to do with Taylorbean, they are just imposing the new guidelines and informing everyone about them. TBW will still do loans that require mortgage insurance however the new restrictions set forth by the mortgage insurance companies (not TBW) will now apply. Give it a rest people and stop trashing this company and find someone else to GOSSIP!! about Permalink

richa65 at 07:13 2009-02-18 said:

With minimum FICO requirements of 740 for broker-originated loans, it appears Taylor, Bean & Whitaker is effectively removing themselves from the wholesale market. I think you misread this. It's only 740 for loans that require MI. Loans 80% and below are not effected.

They have certainly not removed themselves from wholesale. What is happening is that the MI companies are going to put brokers in a very difficult situation. We will have a pretty big hole in our product offering when all the MI companies eventually shut down TPO's entirely.

And don't think the correspondents are immune. They are taking big hits right now - it's just on a case by case basis. Not across the board. Permalink

underwritingdiva at 08:24 2009-02-18 said:

They are using Genworths guidelines. This may be a blessing for TB & W since they have been having on going delays with funding their loans at the end of the month. Permalink

michaelblomquist at 08:43 2009-02-18 said:

I have been very surprised that MI companies have paid out on any claims given the magnitude of fraud in originations. The rampant fraud was not limited in TPOs, but across the board.

The big difference is the size of the checking/savings accounts. TPOs don't have access to TARP and one repurchase do to misreps would wipe out most brokers. Permalink

richa65 at 10:43 2009-02-18 said:

No, they are not using Genworth's guidelines. Genworth is a 720 minimum. They are either using a negotiated structure with PMI or someone else - or one of the 3 that have not yet published their TPO stuff has just given us a sneak peek.

My guess is that the heavy hitters will be able to negotiate their own agreements. Specifically Wells, who basically owns their MI companies. The question is will they care enough to bother? Probably not. Permalink

aram6003 at 21:17 2009-02-18 said:

What has RMIC announced? Permalink

Tobby at 23:36 2009-02-18 said:

I have been very surprised that MI companies have paid out on any claims given the magnitude of fraud in originations. The rampant fraud was not limited in TPOs, but across the board.

The MI companies are contractually obligated to the holder which is not the originator. The MI companies do indeed have recourse to put the loan back on the originator if it was fraudulent and/or the MI was underwritten by the originator. Unfortunately most of these originators are out of business. Thus the reason MI companies are dumping TPO business and sticking to the "deep pocketed" lenders (banks). The default rate for brokers is not much worse than retail. However, the actual dollar losses for the MI companies are about three times more for TPO than banks. Permalink

candleinthewind at 01:05 2009-02-19 said:

Taylor, Bean and Whitaker has been a pillar in the wholesale market for many years and this is a sign of more than just distancing themselves from brokers. It is a serious sign of a crack in the foundation with this lender and they are not alone. My colleague closed two loans with TBW two weeks ago (refi's) and funding took five business days. Even today, I spent over twenty-five minutes on hold at the lock desk and didn't get through. I'm not sure if TBW received any bailout money as of yet but they are most certainly short staffed and spread thin. TBW may just be one of the many ailing lenders limping along and doing their best to stay afloat. I just hope they don't let anymore people go as it's tough to get anything done in a reasonable amount of time as it is. 30 day lock? Forget about it! Taking brokers out of the picture spells doom for homeowners as lenders are laying off workers and the public is just too great in numbers for banks to reach all those who need help. Cross your fingers, TBW...[list:69073e4cfe][/list:u:69073e4cfe] Permalink

Alexius12 at 02:17 2009-02-19 said:

Exactly, this is not TBW mandate, but rather an MI company guideline.

It is very likely illegal for an MI company to reject the same file they would approve otherwise on a retail level. For various reasons, especially when implying that an approved mortgage broker has lower merits than any other retail loan officer that does not even need to maintain the net-worth requirements and go through the different state regulatory agency periodical auditing and examinations we do on the wholesale level.

Completely absurd and outraging for an MI company to imply that ALL mortgage brokers are fraudulent originators. Surely there are some, just like bad stock brokers, investment bankers, cops or teachers. But to say that we are all not to be trusted is obscene and we deserve to be compensated for such slander and game rigging. Permalink