If so, you may want to check with your mortgage professional to make sure they are still able to deliver this product. Yesterday, HUD suspended a major lender, TBW, from doing FHA mortgages leaving thousands of mortgage brokers and their clients in a lurch. If you're working with a mortgage broker with a standard FHA mortgage that was being brokered to Taylor, Bean, Whitaker, your mortgage originator should be able to find a new source for the financing. However, it's my understanding that for mortgage brokers, TBW was one of the few lenders offering FHA 203k's to mortgage brokers and their loyal clients.
203k mortgages have been gaining in popularity, especially the Streamlined FHA 203k, as they allow home buyers to make repairs to homes with one mortgage at a rate lower than what you would typically find with a construction loan. With the amount of homes that have been neglected due to the economy, 203k's have been a good match.
I feel badly for mortgage brokers being thrown yet another curve ball. If you are in the process of getting a 203k with a mortgage broker, hopefully everything is fine but I recommend that you contact your mortgage originator to make sure.
NOTE: TBW is not Mortgage Master Service Corporation's source for FHA 203k (or any) mortgages.
UPDATE August 12, 2009: It's my understanding that Bank of America may be taking over TBW's servicing of FHA mortgage loans.
Yes, I had one there that was funded before the suspension but not honored etc. Fortunately, we have other options so I can flip it but it definitely has been a stressful situation for the client.
It’s really terrible how many people are impacted by this–I’m glad it worked out for you and your client, Matt.
My husband last year through no falt of his own was put on a 4 day furlogh last year so we lost a big part of our mortgage, we did the councleing through HUD and got pre-qualified for the Hope 4 Homeowner Program under Bush for a 40 year fix refinance under this program, my mortgage company was set to except the only problem was that the banks did not want to lend the money under the program, so what Obama did was take this program leave it the same and just change the name from Hope 4 Homeowner to Making Home Affordable and just letting all those homeowners under Fannie Mae and Freddie Mac get the 40 year fix and the rest of us who did not fall under these loans are only going to get a 5 year modification its not far to the rest of us that he left us to to the dust instead of letting us have the same oppertunity.
Rosa, I received your voicemail too and I’m very sorry for your situation. I’m not involved with the side of the mortgage industry that you’re in at this time.
All I can do is suggest you contact a HUD approved counselor (I have a link to their site on the upper left cornerof this site).
You can also check into hiring an attorney who specializes in foreclosure preventions (this may cost you without any guaranteed results).
I do recommend that you contact your elected officials on every level–why not go all the way to Obama…they all need to know what real Americans like you are going through.
We just got a 203 k that was bought by Bank of America but we cannot get any response from the 1800 number we were told to call — it’s just a recording that says to call back later — and our contractors are about to stop working because we do not know when or how to get a draw off of our loan. any advice?
Hi Sarah, I recommend that you check with your mortgage originator. I understand that Bank of America is taking up to 60 days to fund the first draw w/203k’s due to the huge volumes they did not anticipate (I’m assuming from TBW going away and all the distressed properties in need of 203(k) financing).
Your mortgage originator should be able to contact BOA and give you an updated service time.
Hang in there!
Sarah,
There is hope! We spent 2 months trying to get a hold of someone in the Bank Of America 203K department to return a call. After several very assertive messages, my husband received a call back. Be prepared to resubmit some of your paperwork (Contractor agreement and W9) but I have a tracking number telling me my first check is arriving Saturday. Good luck! Living in the middle of construction has been a nightmare the last 2 months. 🙂
Sarah, thanks for sharing!