Freddie Mac said losses from the demise of Taylor, Bean & Whitaker Mortgage Corp. could be significantly more than the $0.5 billion it already projected.
In a public filing yesterday, the Federal Home Loan Mortgage Corp. reported that it had originally forecasted $500 million in losses from Taylor Bean’s bankruptcy.
Freddie originally terminated Taylor Bean as a seller-servicer on Aug. 4. The Ocala, Fla.-based lender announced on Aug. 24 plans to wind down and file for bankruptcy.
But the failure of Colonial Bank, where Taylor Bean kept loan payments it collected on loans owned or guaranteed by Freddie, have led to additional exposure that “could be significant.”
McLean, Va.-based Freddie said it filed a $595 million proof of claim on Nov. 18 against Colonial for the mortgage payments, associated escrow payments and loan payoffs that are on deposit at the failed institution.
“The proof of claim relates to monies that remain, or should remain,” the filing stated.
However, Freddie said can’t quantify anticipated losses.