The fact that TB&W was shut down this week did not create an earth-shattering news event.   The reason:   the impact of this bank closure is less like an earthquake than a tsunami—the wave of destruction hasn’t hit the shore yet.  This a behind the scenes implode and as yet has not completely reverberated to the ultimate borrower.   As a wholesale bank, TB&W was where mortgage brokers often went for the loans that no one else would do:   for instance the very difficult FHA-insured manufactured home loan.   TB&W was one of the diminishing loan options for manufactured homes and for those borrowers, shopping for loans, they may find the playing field significantly down-sized.   Just considering the loans that were likely already in line for underwriting, there are an anticipated 30,000 loans who now may be homeless.  And for some people that already were ready to move into homes ready to fund, they may be homeless as well.

For those of you that had your loans in the pipeline, your lender may be scrambling to place you.   There is the tick-tock of the appraisal shelf life,  your loan lock rate, your next mortgage payment due date—and now all is up in the air.   Any borrower who has a loan in the works needs to contact his loan officers and not just ask hard and fast questions, but demand them, “Where was my loan being placed?   Do you have a back up source?   When will my appraisal expire?  If you were putting my loan with TB&W, what is your back-up plan?”   If there is any sense of hesitation, any wishy-washy-feel-good responses, any skirting-around-the-issue stall tactic, stop right there!   It is time to take matters into your own hands. 

Will my FHA Streamline Refinance with Taylor, Bean, & Whitaker close? It’s in-process.

No, Taylor Bean is no longer funding FHA mortgages.  Your FHA Streamline Refinance will not close with TBW.  If you want to do an FHA Streamline Refinance on your home, you’ll have to start the refinance process over.

My Taylor, Bean, & Whitaker FHA mortgage was already scheduled for a closing.  Am I still closing?

No, Taylor Bean is no longer funding FHA mortgages.  Consider your FHA mortgage application “dead”.  If you want to close on an FHA mortgage of any type — purchase or refinance — you’ll have to start the refinance process over.   For manufactured home loans, www.mh-lending.com

I am buying a manufactured home and have a FHA approval from Taylor, Bean, & Whitaker. Will it be honored?

No, Taylor Bean is no longer funding FHA mortgages.  If your loan officer hasn’t done it already, notify your real estate agent and every other interested party about what’s going on.  The Taylor Bean shutdown has been widely publicized.  Your seller won’t be happy about the situation, but they won’t be able to say it’s your fault, either.  The next step is to start a new FHA mortgage application with a new FHA lender.  For manufactured home loans, www.mh-lending.com

I am buying a manufactured home and my Taylor, Bean, & Whitaker FHA mortgage was cleared-to-close.  Will my mortgage fund on time?

No, Taylor Bean is no longer funding FHA mortgages.  Even though you were cleared-to-close, the government is forbidding TBW from sending funds to your closing.  If you want to use FHA financing for your purchase of a manufactured home loans, www.mh-lending.com

I closed on a FHA refinance with Taylor, Bean, & Whitaker last week.  The loan was scheduled to fund this week, but then the government shut down TBW.  Will my loan still fund?

No, Taylor Bean is no longer funding FHA mortgages.  Even though your loan was “closed”, it doesn’t fund until the 3-Day Right of Rescission is over.  Therefore, if you signed your refinance paperwork with an escrow agent July 31, August 3, or August 4, 2009, your refinance will not fund with TBW.  If you signed your paperwork on Thursday, July 30, your odds of the loan actually funding were small.  If it didn’t fund and you still want an FHA mortgage, you’ll have to start the FHA mortgage approval process over.

I went to my FHA purchase closing  on Wednesday, right as the Feds were raiding Taylor, Bean, & Whitaker’s offices.  I signed all of my paperwork but my loan didn’t fund.  When will the funds get to my closing so I can finally close on my house?

The funds will not arrive for your closing.  TBW is no longer funding FHA mortgages.  All parties in the transaction should be made aware of your financing situation as soon as possible. For manufactured home loans, www.mh-lending.com

Can’t another lender just “assume” my in-process Taylor, Bean, & Whitaker FHA mortgage approval?

No. FHA mortgage approvals are not assumable.  If you move your FHA home loan to a different lender, expect to restart your mortgage approval from the beginning including the signing of new disclosures and the providing of current income and asset documentation.

If Taylor, Bean, & Whitaker is no longer making FHA manufactured home mortgages, who is?

Contact www.mh-lending.com

I paid for an FHA appraisal as part of my mortgage approval.  Do I have to pay for another appraisal with a new FHA mortgage lender?

It depends.  Some appraisers will charge a small fee to “assign” your FHA appraisal to a new lender and some will do it for free.  Depending on the age of your appraisal, though, you may be required to re-order and start fresh.  This will be the most expensive option, but it’s out of your hands — appraisal requirements are at the lender’s discretion.

Okay, I get it.  I have to start from Square One with a new FHA mortgage application.  Do I get to keep my old mortgage rate?

No. When your mortgage application was canceled with Taylor Bean, your mortgage rate lock was canceled, too.  Your new mortgage rate will be whatever the current rates are for an FHA home loan.

My loan officer says that Taylor, Bean, & Whitaker was his only FHA lender. What do I do?

If you are in need of an FHA manufactured home mortgage, contact www.mh-lending.com