The National Association of Mortgage Brokers (NAMB) has expressed its concern over the loss of Taylor, Bean & Whitaker (TBW) as a major channel for wholesale funding of loans. NAMB President Jim Pair, CMC, issued the following statement in response to this critical change in the market:
“Losing one of the largest wholesale mortgage lenders as a channel for funding has already triggered a ripple effect throughout the industry, canceling tens of thousands of loan approvals and severely harming the consumer. Taylor, Bean and Whitaker’s failure to fund its pipeline of loans will cause consumers to be left waiting as originators attempt to transfer loans.
“Because of the Home Valuation Code of Conduct (HVCC), loans will not be transferred without further costs forced on consumers as new appraisals will need to be ordered. The lack of portability caused by the HVCC, coupled with already slow turnaround times, will undoubtedly prolong the process to obtain a home or refinance. According to a recent National Association of Realtors survey, nearly 70 percent of NAR appraiser members say the HVCC has increased the time to close by more than a week. The HVCC must be repealed immediately for these loans to be transferred and funded without harming consumers.
“New disclosure requirements under Regulation Z of the Truth-in-Lending Act (TILA) implemented by the Mortgage Disclosure and Improvement Act (MDIA) took effect July 30, 2009. Lenders are already raising concerns about the required waiting periods under the new rule and their effect on the unfunded loans by Taylor, Bean & Whitaker. NAMB urges the Federal Reserve to clarify the new rule, so that all lenders and wholesalers are using similar guidelines preventing more obstacles and time delays for consumers during the loan closing process.
“The issue of Taylor, Bean & Whitaker has shed more light on problems in the marketplace. Together, the HVCC and the MDIA disclosure requirements are causing unintended consequences and slowing a housing recovery. NAMB will continue to work to ensure the consumer will not be hindered or delayed.”
For more information, visit www.namb.org.