The FDIC and Taylor Bean & Whitaker have been finalizing an accord to
quell a mortgage loan crisis that has afflicted thousands of borrowers
across the country since September 2009.
Since the implosion of Ocala-based home lender Taylor Bean in early
August, borrowers have complained of a litany of problems: lack of
confirmation after payments were made; home-owners insurance and taxes
not paid out of escrow on time; and bounced checks from closed Taylor
Bean escrow accounts.
Taylor Bean, which was in the midst of transferring much of its loan
portfolio to other companies, blamed the problems largely on frozen
accounts held by Colonial Bank.
In turn, the Federal Deposit Insurance Corp., as receiver for the
recently failed Colonial, accused Taylor Bean of holding hundreds of
thousands of home-owners "hostage" by refusing to release their loan
information.
The FDIC has control of the home owners escrow accounts in federal bankruptcy court. The BoA knows this but is is trying to collect the missing escrow funds from the home owners. The BoA has tried to increase the home-owner mortgages by 50 per cent or more to cover the escrow shortfall that will eventually be resolved.
In a filing in Taylor Bean's bankruptcy case in
Jacksonville, the FDIC said that mortgage payments from hundreds of
thousands of borrowers have been "sitting in limbo" as a result.
The Bank of America has been trying to get mortgagees to pay for the missing escrow monies that are tied up in bankruptcy court by raising mortgagees to cover the shortfall.
What you can do is to file a RESPA complaint if the Boa is gouging you. Start with your bank, then the state and finally HUD.
The U.S. Department of Housing and Urban Development suggests irate
customers consider filing a complaint through the Real Estate Settlement
Procedures Act (RESPA). First, customers have to send a formal
complaint to their new lender and wait 20 days for a
response.
For details on the process, go to
www.hud.gov/respa
• Various lenders have taken over different parts of Taylor Bean's
mortgage portfolio in
Florida:
• For customer service issues with Bank of America or
Saxon, the primary regulator is the Office of the Comptroller of the
Currency; the Florida Office of Financial Regulation oversees RoundPoint
and Ocwen; and the Office of Thrift Supervision oversees Cenlar.
Here is an example of a sample RESPA complaint:
Director, Office of RESPA and
Interstate Land Sales
US Department of Housing and Urban
Development
Room 9154
451 7th Street, SW
Washington, DC
20410
Subject:
Bank of America Account no. nnnnnnnnn, RESPA Complaint
Dear sirs:
I have attempted to resolve a RESPA
complaint with the Bank of America (B0A) on several occasions. My
wife and I have met with the Bank of America representative and the
corporate office has researched out account.
This
is a "qualified written request" under Section 6 of the
Real Estate Settlement Procedures Act (RESPA).
I
am writing because:
- The
Bank of America have (BoA) raised my mortgage payment because of a
Taylor, Bean & Whitaker (TB&W ) escrow shortfall. Apparently
there was a problem transferring our escrow funds when BoA took over
TB&W.
- According
to the St. Petersburg Times, the escrow payments are being worked
out in Bankruptcy Court. I do not wish to pay monies to Bank of
America that I have not formally agreed to pay in any legal mortgage
agreement. I have already paid $nnnn.nn of monies that were put in
escrow by TB&W.
For reasons that the BoA cannot explain, it only
received $nnnn.nn in escrow funds from TB&W. The BoA should
consider accepting the normal payment of $nnnn.nn that my mortgage
loan requires with TB&W until this matter is resolved between
the FDIC, the bankruptcy court and TB&W.
- I
have talked to Bank of America customer service about this matter on
9/14/2009 and received its Notice of Assignment letter, dated August
25,2009. I met with January 15 and January 29, 2009. My wife also
had a phone conference with my insurance company and the Bank of America on January
22, 2010 regarding the insurance escrow. This issue started when our insurance company advised us on Sept. 14, 2009 that the TB&W had not paid
the insurance escrow.
- My
wife and I met with BoA and paid the January 2010 mortgage after the
bank removed an excess charge of $700. The BoA did not credit the
account correctly and then tuned us over to a bill collector. We
have already paid $nnn.nn in additional escrow monies to BoA.
- So
far the BoA's position it that we should pay for the missing escrow
funds that we have already paid to TB&W. Our position is that
this an internal bank matter between TB&W and BoA that should be
settled in bankruptcy court.
- A
local BoA employee, ____________, believed, the amount of money
that is missing is the escrow amount that was owed to the insurance company. My insurance company
denies that it was paid the escrow twice. Ms. __________ can be
contacted at 727.789.7900 X4.This BoA employee eventually discovered that the missing escrow money is under litigation with he FDIC in Federal Bankruptcy Court.
- Please
contact me at nnn nnn-nnnn after 10am EST.
I
understand that under Section 6 of RESPA you are required to
acknowledge my request and must try to resolve the issue within 60
business days. I have also filed a complaint with Florida Office of
the Comptroller of the Currency.
Sincerely,
Contact Jeff Harrington at jharrington@sptimes.com or (727)
893-8242. Follow him on Twitter at twitter.com/jeffmharrington.
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