TBW Holding Onto Payments, Getting Sued by FDIC?

Wednesday, September 02, 2009 , , , , , 1 Comments



WSJ:

The FDIC, which is the receiver for Alabama's recently shuttered Colonial Bank, says Taylor Bean is refusing to transfer vital information related to its servicing of mortgage loans.

"As a result, while hundreds of thousands of homeowners continue to make their monthly mortgage payments, those payments are now sitting in limbo," the FDIC said in the court filing...

Taylor Bean, at one time the largest wholesale mortgage lender not owned by a bank, also serviced nearly 500,000 mortgage loans totaling more than $80 billion. The lucrative business involves collecting monthly mortgage payments and disbursing funds to investors.

The FDIC says it believes some $55 million in electronic payments, plus 50,000 checks delivered to a Colonial Bank lock box, haven't been deposited. That amount doesn't include any payments homeowners made directly to Taylor Bean.

The regulator also says it has information indicating that Taylor Bean continues to improperly direct homeowners to send their mortgage payments to an account it opened at Wachovia Bank...

It wants Judge Jerry A. Funk of the U.S. Bankruptcy Court in Jacksonville, Fla., to lift the Bankruptcy Code's automatic-stay provision to force the lender to turn over all records, tapes and undeposited funds related to servicing the loans.

Oh and there's more (via Ocala.com):

Taylor Bean’s remaining mortgages are non government insured loans, which are still overseen by Taylor Bean.

Although Hinson says Taylor Bean is cooperating, others complain the former mortgage giant is dragging its heels.

Among those is U.S. Bank National Association, which is the trustee for eight other financial entities, appealing to the U.S. Bankruptcy Court in Jacksonville.

U.S. Bank is asking the court to make Taylor Bean hand over financial information regarding nearly 2,000 mortgages that are owned by U.S. Bank National Association’s clients but serviced by Taylor Bean.

U.S. Bank said in its request, filed Aug. 31, that it needed that information to ensure the transfer of its mortgages, worth about $170 million, to other servicers and to ensure payments associated with those mortgages, such as home insurance bills held in escrow and real estate taxes.

U.S. Bank said it’s been trying to get the information for three weeks but has been mostly ignored.

The Federal Deposit Insurance Corp. filed a similar suit last week against Taylor Bean, seeking similar information about $1.9 billion in mortgage checks.
We still have not heard a peep out of SIGTARP since they raided TBW in early August. The clusterfuck continues.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

1 comments:

OldSouth said...

Or have those funds been directed offshore, never to be seen again in this life?