Warning: Freddie Mac says TBW losses ‘could be significant’
By Daniel at 24 November, 2009, 1:18 am
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http://www.google.com/hostednews/ap/article/ALeqM5jr_2sraYSFZBel3a452Ue7PIahLAD9C5H0B00
NEW YORK — Mortgage finance company Freddie Mac on Monday put its initial loss estimate related to the bankruptcy of Taylor, Bean & Whitaker Mortgage Corp. at $500 million, and noted the figure could be much higher.
In a regulatory filing with the Securities and Exchange Commission, government-controlled Freddie Mac estimated losses related to Taylor Bean’s loan repurchase obligations at $500 million.
Taylor Bean had been one nation’s biggest independent mortgage bankers and made loans issued by the Federal Housing Administration. On Aug. 4, federal authorities barred the company from making FHA loans after it failed to submit a required financial report, raising concerns about fraud.
Freddie Mac also suspended Taylor Bean as an issuer of mortgage-backed securities — mortgages that are bundled and sold to investors. Taylor Bean filed for Chapter 11 bankruptcy on Aug. 24.
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