Taylor, Bean & Whitaker Knock Themselves Out (of TPO)

The following announcement limiting third-party (broker) originations was just released by wholesale giant Taylor, Bean & Whitaker effective February 20, 2009:

Any Third Party Originated Loan Over 80% LTV

• Minimum FICO 740
• Maximum DTI 38
• Maximum LTV 90
• 1 Unit Primary Residence ONLY

Definition of Third Party Originations (for TB&W Purposes) - A Third Party Origination is a loan for which the loan origination (taking the loan application) or processing functions are performed by an entity other than the entity closing and funding (loans must be funded from a warehouse line in the lender's name or using the lender's own funds) the loan.

• In essence, if the originator originates, processes, underwrites, closes and funds in their own name, they are not considered a Third Party Origination. These loans are eligible for delivery to TB&W either through our Whole Loan Purchase department or through our Correspondent Lending Division.
• If TB&W underwrites, closes, or funds the loan, the loan is considered a Third Party Origination.
• Loans at or below 80% LTV with Third Party Origination are not affected and will continue to be acceptable to TB&W as normal.

Read the complete announcement for more details and other changes. With minimum FICO requirements of 740 for broker-originated loans, it appears Taylor, Bean & Whitaker is effectively removing themselves from the wholesale market.

Stay tuned for updates!