MORTGAGE LOAN COMPLIANCE®

Yesterday Miami U.S. District Judge Adalberto Jordan issued a restraining order after Bank of America sued Colonial, claiming Colonial is holding the cash and loans as a custodian for Ocala Funding Inc. The order notes that the suit relates to thousands of mortgages totaling more than $1 billion.

Bank of America is seeking to stop Colonial Bank, currently under federal criminal investigation, from selling or otherwise disposing of the $1 billion in cash and loans.

Colonial, based in Orlando, Florida, said last week it could be placed into receivership with the FDIC after meeting with the Alabama State Banking Board.

“To the extent that the interests of the public are implicated in this case, they weigh in favor of requiring Colonial to honor its contractual obligations and avoiding what would amount to a $1 billion heist,” said Jordan.

Ocala is a commercial-paper vehicle sponsored by troubled Taylor, Bean & Whitaker, 12th-largest U.S. home lender, which received funding from Colonial.

This is a recent post from TB&W’s website:

Please be advised that Taylor, Bean & Whitaker Mortgage Corp. has officially ceased a majority of its operations on August 5, 2009. Only essential staffing will be retained to finalize operations and to ensure a streamlined transition of Servicing Rights for our remaining portfolio. As the transfer of loans continues to occur, correspondence will be mailed to each account holder detailing their new Mortgage Servicer's information and transfer date. In the mean time, all online payments have been disabled. If your loan is still being Serviced by Taylor, Bean & Whitaker Mortgage Corp. please mail your payments to the address provided below:

Taylor, Bean & Whitaker Mortgage Corp.
Attn: Cashiering
1417 N. Magnolia Ave.
Ocala, FL 34475

We sincerely apologize for any inconvenience this issue may have caused you and appreciate your patience during this transition.

Taylor, Bean & Whitaker is also facing a class action lawsuit on behalf of employees under the Worker Adjustment and Retraining Notification (WARN) Act.

______________________

Mortgage Loan Compliance®

www.ml-compliance.com