by Bill McBride on 8/10/2009 12:49:00 PM
Monday, August 10, 2009
From Bloomberg: Freddie Mac Says Its Loss From Taylor Bean May Be 'Significant'
Freddie Mac ... said the collapse of lender Taylor, Bean & Whitaker Mortgage Corp. may cause it “significant” losses.From the SEC filing:
The Ocala, Florida-based lender accounted for about 5.2 percent of Freddie Mac’s single-family mortgage purchases last year ... Freddie Mac can force lenders to repurchase defaulted loans that weren’t of the credit quality they represented, a use of its contracts already made harder by the collapses of IndyMac Bancorp., Washington Mutual Inc. and Lehman Brothers Holdings Inc., the company said.
Brian Faith, a spokesman for Fannie Mae, Freddie Mac’s Washington-based rival, said last week his company hasn’t done business with Taylor Bean “for some time.”
On August 4, 2009, we notified Taylor, Bean & Whitaker Mortgage Corp., or TBW, that we had terminated its eligibility, for cause, as a seller and servicer for us effective immediately. TBW accounted for approximately 5.2% and 2.7% of our single-family mortgage purchase volume activity for full-year 2008 and the six months ended June 30, 2009, respectively. We are in the process of determining our total exposure to TBW in the event it cannot perform its contractual obligations to us. The amount of our losses in such event could be significant.
Posted by Bill McBride on 8/10/2009 12:49:00 PM