One of the top ten wholesale mortgage lenders has settled with 14 states over lending practices tied to “nontraditional loans” originated back in 2006, according to the Massachusetts Division of Banks.
Taylor, Bean & Whitaker Mortgage Corporation (TBW) has agreed to make a payment of $9 million to assist the states in their oversight of mortgage origination practices, partially by helping to fund the National Mortgage Licensing System.
The company will implement the Making Home Affordable program for loans held in its portfolio to help struggling borrowers obtain loan modifications.
An independent firm will also be hired to review TBW’s nontraditional mortgages originated from 2006 to 2007 to determine if additional reimbursement to consumers is necessary.
Between 2006 and 2007, TBW originated 215,880 traditional and nontraditional mortgage loans nationally, but halted such origination in early 2007.
The 14 State mortgage regulators included in this settlement are the Arizona, Washington DC, Florida, Georgia, Idaho, Illinois, Louisiana, Maryland, Massachusetts, Mississippi, New Jersey, North Carolina, Pennsylvania, and Vermont.
Consumers affected by the lawsuit will be contacted by TBW regarding a possible loan modification.