Here’s a little bit of good news with regard to the Taylor, Bean, & Whitaker collapse, at least with borrowers in mind.
On Friday, the Office of Financial Regulation (Florida) issued a second emergency cease and desist order against the mortgage lender, following a previous one issued by HUD, which effectively barred the company from originating new loans.
The order issued by the OFR calls on TBW to cease foreclosure proceedings, the assessment of late charges, and the reporting of late mortgage payments to any credit bureau.
That’s a pretty good deal if you’re a struggling borrower with a TBW-issued mortgage, but it’s a result of TBW’s inability to offer online payments or automatic payment deductions for its home mortgage customers.
TBW is also no longer servicing Ginnie Mae and Freddie Mac loans, so it seems a bit of necessity to put the brakes on foreclosures and late payments until everything gets organized.
“This action underscores the fact that the OFR will use every available enforcement power to protect the financial interests of Florida customers,” said Acting Commissioner Linda Charity, in a release.