Posts Tagged ‘financial protection’

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Third Largest FHA Lender Suspended

Friday, August 7th, 2009

tbw

Taylor, Bean and Whitaker No Longer Able to Issue FHA Loans

Taylor Bean was known for being less strict than other mortgage lenders. The agency insured mortgages with down payments as low as 3.5 percent, and didn’t have minimum credit-score requirements. “I’ve heard it said it’s good that we have Taylor Bean there because no one else will buy these loans,” said David Lykken, a mortgage expert based out of Austin, Texas. “To say they’re a bottom-feeder may be too strong a statement, but that’s how they’re viewed in a lot of cases.”
On Wednesday, Taylor Bean shut its doors. A press release from TBW reads:

“TAYLOR, BEAN & WHITAKER MORTGAGE CORP. (“TBW”) RECEIVED NOTIFICATION ON AUGUST 4, 2009 FROM THE U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, FREDDIE MAC AND GINNIE MAE (THE “AGENCIES”) THAT IT WAS BEING TERMINATED AND/OR SUSPENDED AS AN APPROVED SELLER AND/OR SERVICER FOR EACH OF THOSE RESPECTIVE FEDERAL AGENCIES.”

Since then, 2,050 employees have been laid off, and federal authorities have gone in and searched the company, forced it to stop making FHA loans and confirmed that its leaders were under investigation for fraud.

So now what?

• Thousands of borrowers seeking mortgage loans and refinancings in Taylor Bean’s pipeline are suddenly back to square one.

• Cash-strapped borrowers could struggle the most to find a replacement lender offering affordable terms. Taylor Bean was one of the country’s largest FHA (Federal Housing Administration) lenders, trailing only Bank of America and Wells Fargo. It was one of very few handling FHA loans for manufactured homes.

• Hundreds of small banks and brokers that sold their loans to Taylor Bean are suddenly scrambling to find new partners. The removal of a major player could lead to higher prices as well as fewer choices.

• Colonial Bank, a $26 billion Alabama bank with nearly 200 branches in Florida, was relying on Taylor Bean as a lifeline. A planned $300 million infusion of capital from Taylor Bean fizzled last week, raising doubts Colonial will continue.

A word on FHA loans. The Federal Housing Administration does not MAKE the loans, but rather, insures them from private lenders. FHA loans are largely issued to financially-strapped or first-time homebuyers due to their low down payments and initial interest rates. TBW subsisted on insuring such loans; to be suspended from doing FHA loans essentially shut down the business.

Anderson Chase Financial

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Posted in Uncategorized | 2 Comments »

Homeowners – Are You Underwater?

Thursday, July 30th, 2009

What does it mean to be “underwater” or “upside down”? When a property is underwater, it means that the homeowner owes more than the property is worth. People who bought their homes in 2006, the peak of the housing bubble when prices were highest, are now left with property that is impossible to sell.

bubble

Now the government is redressing its Home Affordable Refinance Program to help out homeowners who have not been delinquent in payments but are upside down and dealing with negative amortization. Lenders can now offer new mortgages to borrowers if the property value is up to 25 percent greater than the mortgage amount. It used to be that lenders could only refinance loans for borrowers whose mortgage was no more than 5 percent greater than the home’s value. However, considering the significant drop in real estate prices, 5 percent wasn’t going to cut it for many homeowners.

You may be wondering, “Don’t we have bigger issues to deal with? Like homeowners who’ve already MISSED payments?” And yes, the government has been trying to mend this issue with various initiatives which have helped to varying degrees, and many loan modification agencies – ones that breed integrity and customer value – are serving consumers for this purpose. But we want to not only remedy the present but also stem future waves of foreclosures.

Many borrowers who AREN’T late on payments are still stuck with mortgages characterized by high interest rates or the potential to adjust beyond the homeowner’s means in coming years. To make matters worse, lenders and mortgage insurers have tightened underwriting rules, typically requiring borrowers to have at least 15 percent equity in a home.

There is some fine print in this new refinancing program. Borrowers must hold a loan that was purchased by Freddie Mac or Fannie Mae, the government-controlled companies that buy most mortgages. To determine whether you have a Fannie or Freddie loan, go to the “loan lookup” tab at www.MakingHomeAffordable.gov.

If you qualify, your interest rate will very likely be slightly higher than the market’s best loan rates, especially if you refinance with someone other than your current servicer. And if you are 5 to 25 percent underwater with a Fannie Mae loan, you must refinance with your current servicer to qualify.

No matter what your current mortgage situation, there is help available. You just need to know where to look and who to consult. Even if it may not seem like your situation is particularly pressing, there are steps that can be taken now to alleviate potential problems in the future.

Anderson Chase Financial

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Posted in Debt Settlement, Loan modification, Uncategorized | 28 Comments »

Taking Action to Relieve Debt

Wednesday, July 29th, 2009

Just about everyone I talk to recognizes that debt is part of life. It’s part of being a consumer. It seems that all of us are juggling debts, whether it’s a mortgage, student loans, credit cards – or all three. Taking loans can help you afford a home or earn a college degree (something that most Americans do not have), so debt is not felt by just the have-nots. In a recent blog entry, we addressed the misperception that “subprime borrowers” are to blame for our current housing crisis, but the truth is, debt affects the poor and the privileged, every part of the socio-economic spectrum.

However, when you have more debt than you can handle, particularly when it’s high-interest credit card debt, it negatively impacts your mood, your health and your relationships. It is important to understand not just how to handle debt and manage your finances, but also how to manage the stresses related to debt and the prospect of paying off loans.

Keep track

Part of handling your debt and handling your stress is learning how to keep track of your spending. Exactly how much debt do you have and how much money can you put toward paying it down each month? Add up your credit card balances, then track your expenses for about a month, taking stock of every dollar that goes out of your wallet. It will be easier to see what can be eliminated. Put extra money toward the card with the highest interest rate while paying the minimums on the others.

When to seek help

It’s possible your debt load is so large, you just can’t manage it. Your monthly income won’t allow you to make payments while keeping up with other expenses and putting food on the table. If that’s the case, don’t just tread water. Start with a credit counseling agency. A savvy counselor should be able to put you on a debt management plan that will have you out of debt in three to five years.

Find ways to relax your body

Every day, do something that makes you feel calm and cools your mood.  It will help clear your mind and reset your brain.  Make an effort to fit in some heart-pumping exercise, as well.  You don’t need to pay for gym membership – a run, some jumping jacks or a walk will do just fine.

Anderson Chase Financial

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Posted in Debt Settlement | 11 Comments »

Built On Integrity

Tuesday, July 14th, 2009

Last Monday, Attorney General Edmund G. Brown Jr. sued a foreclosure consultant and an attorney who together conned 2,000 desperate homeowners. The homeowners were charged $1,800 in upfront fees, at least $1,200 per month, and contingency fees of up to 80% of their home’s value.

Beginning in mid-2008, the foreclosure consultant promised homeowners facing foreclosure that he could help them lower or eliminate their mortgage debt. He convinced more than 2,000 homeowners to hire the attorney to file suits claiming that the loan was invalid because the mortgages had been sold off so many times that the lender could not prove who owned it. After filing lawsuits, the attorney did virtually nothing to advance the cases, instead extending the lawsuits as long as possible in order to collect additional monthly fees.

Stories like this are what make Anderson Chase Financial not only frustrated with the companies who are so hungry for financial gain that they are willing to obtain it at the expense of people’s homes but also makes Anderson Chase Financial stand apart as a consumer financial protection company. Calling ourselves a consumer financial protection company promises two things: a focus on the consumer, and a focus on protecting the consumer’s finances. We take pride in the honesty and integrity of our work. We take joy in seeing our customers’ financial triumphs and helping them on their way to a new beginning and lasting change. That’s why we offer a 100% money back guarantee if we are unable to lower your mortgage.

If you are facing a financial crisis, be careful of who you call on to help you. Look for companies that are represented by seasoned professionals and experts who have a proven record of helping customers. Look for a company that prizes customer care and consistent service.

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Posted in About Us | 5 Comments »

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