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Your Bi-Weekly Newsflash from
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A quick dash of news you need to hear
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Amid FHA allegations of fraud, CEO shuts down Ocala's Taylor Bean mortgage business
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 Why do we in Tampa Bay even care about a mortgage business in Ocala? For three good reasons.
* First, when Taylor Bean closed its doors Wednesday, more
than 1,000 employees were suddenly out of work including many who live
just north of Tampa Bay. For modest-sized Ocala, it's an extra painful
economic blow that business leaders there called "pretty shocking."
* Second, Taylor Bean had come out of nowhere to promise a rescue of $300 million in fresh capital to Colonial Bank, a $26 billion Alabama bank with nearly 200 branches in Florida -- nearly two dozen of them across the Tampa Bay area. That deal fizzled away last week but had it gone through, this Ocala mortgage company would have effectively controlled giant Colonial.
* Third, Taylor Bean, while no household name, was in fact one of the top 10 wholesale mortgage lenders in the country. It oversaw more than $30 billion worth of business annually and was the third largest lender underwriting Federal Housing Administration-insured loans. Which explains why it would have the potential clout to swoop in and invest heavily in Colonial.
Read on...
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| Lawyer's suit over unaffordable loans could be a model |
 A Boston lawyer's suit targeting two large mortgage companies
accused of making unaffordable loans could spur similar suits
throughout the country.
Gary Klein, of the law firm Roddy, Klein and Ryan, filed suit
against Bank of America Home Mortgage and Wells Fargo Home Mortgage in
federal court in June and July, the Boston Globe
reports. He claims the lenders' "payment option" mortgages grew larger
over time, and the companies knew or should have known that borrowers
wouldn't be able to afford them. He is seeking class-action status.
Suffolk University law professor Kathleen Engel told the Globe that
other lawyers will be watching the litigation. "If this case goes
forward, it will be a model throughout the country,'' she said.
The suits are based on a 2008 decision by the state's highest court
that upheld the state attorney general's arguments that lenders
violated state law by making loans that were almost certain to lead to
foreclosure. Engel told the newspaper that the case was the first in
the country to hold lenders accountable for mortgage terms that are
legal on their face, but unfair in practice. The decision "should put
lenders on edge,'' Engel said.
Bank of America said Klein's suit is without merit, while Wells Fargo declined comment.
Full Article
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Banks express hope for fed short-sale effort
The federal government is launching a program to simplify and speed up
the short-sale process by providing standardized documentation, cash
incentives to lenders, and a $1,500 moving allowance to borrowers.
Holders of second liens will get up to $1,000 to relinquish their
claims.
Banks say the short-sale process has been taking so long because both
their employees and real estate practitioners are learning as they go.
David Sunlin, vice president in charge of short sales at Bank of
America, says he hopes the new government plan will help. "About half
of short sales never close. We see it as a big lost opportunity, and we
need to improve the rate we close them," he says.
Wells Fargo says it has cut its short sale average turnaround time from
90 days to 30 days by preparing a guide from real estate practitioners
and putting in place procedures to handle short-sale requests.
The federal government first announced its short sales initiative in
May at the annual Washington meetings of the National Association of
Realtors
Full Article. I hope you enjoyed this newsletter. Sincerely Yours,
This newsletter is not meant to substitute for legal advice. If you have a legal question, please contact our office and speak with an attorney. | |
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