THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Special Alert: SA2009038
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Special Alert: SA2009038
Dear Associates:
We recently advised you that the following entity:
Taylor, Bean & Whitaker Mortgage Corporation
ceased all mortgage origination operations. The information indicated that Taylor, Bean & Whitaker ("TBW") would not close or fund any further mortgage loans, even those currently pending.
On August 11, 2009, the Michigan Office of Financial and Insurance Regulation announced that it ordered TBW to stop doing business in Michigan, either as a mortgage lender or as a servicer.
At this time we do not have any definitive information regarding the disposition of payoffs involving TBW.
We received information on August 12, 2009 stating that Bank of America will take over Taylor, Bean & Whitaker's loan servicing functions for FHA-insured mortgages. Attached is a Q&A Summary from FHA, which can also be found at http://www.hud.gov/news/consumer-guidance.pdf. It states that mortgagors will receive a letter from BAC Home Loans Servicing, LP within two weeks of their loan being added to their system. We have no verifiable information about the payoff of these mortgages. We have no information about other types of mortgages. We caution against sending funds to any lender for any purpose unless you have a current payoff letter from that lender and they can document, in writing, that they are servicing a specific loan.
The absence of reliable information regarding TBW-related payoffs may mean that closings may be delayed or canceled. We caution against sending any funds to TBW or any entity that has ceased operations unless you can be assured that you will receive a release/satisfaction in exchange. The ultimate responsibility for obtaining a release/satisfaction rests with the closing agent. With respect to TBW, we strongly recommend that agents and associates require a current payoff letter and a fully-executed and acknowledged release/satisfaction to be sent to them in advance, to be held in escrow until payment is received.
Q&A Summary from FHA (Click to View)
If you have questions relating to this bulletin, please contact Stewart Legal Services or your local underwriting personnel.
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References
- Bulletins Replaced:
- None
- Related Bulletins:
- SA2009005 - Closing Alert - Updated - Transactions regarding Taylor, Bean & Whitaker
- SA2009035 - Special Alert - Taylor, Bean & Whitaker Mortgage Corporation
- SA2009037 - Special Alert - Updated - Taylor, Bean & Whitaker Mortgage Corporation
- SA2009042 - Special Alert - Updated - Taylor, Bean & Whitaker Mortgage Corporation
- Underwriting Manual:
- None
- Exceptions Manual:
- None
- Forms:
- None