Last week, one of the nations largest wholesale mortgage companies shut their doors when Taylor, Bean & Whitaker closed their doors and announced that they were no longer funding loans. This was a blow to many loan officers and borrowers - because it is estimated that as many as 30,000 people were trying to get a loan funded through Taylor, Bean & Whitaker who will have to now go somewhere else to get their loan done.
Which for many won't cause too much of a problem other than starting over again with a different lender... but for some... they may not even be able to get a mortgage at all.
You see, TB&W was known for their ability to do loans that few, if any, other lenders would be willing to do. Manufactured homes, FHA loans with no credit score requirement, FHA 203k loans and a small handful of other niche products were some of their specialties. And now that they are gone, many people who thought they could get their loan done there now cannot. And they may not be able to find another lender who can get their loan done either.
Which is just another reason to remember to always have a backup when applying for a loan.
Getting a backup lender in place takes more work on the loan officers part, but it is well worth it. Your loan officer can even "double submit" your file to multiple lenders at once - although it is sometimes frowned upon by the lenders, it is possible that it is your best bet.
So when working with a loan officer, be sure to ask him this one question:
Do we have a backup plan should something happen with our first choice of a lender?
Taylor Bean & Whitaker Information
Justin McHood is a loan officer living in the Phoenix, Arizona area. You can find Justin on Facebook, Twitter, ActiveRain or LinkedIn and he is happy to answer any mortgage-related questions that you may have.