In a Securities and Exchange Commission filing Monday, Freddie Mac said its losses stemming from Taylor, Bean & Whitaker Mortgage Corp.'s (TBW) bankruptcy could be ‘significant.’
The company previously estimated the amount of its net potential exposure related to TBW's loan repurchase obligations to be approximately $500 million.
‘Freddie Mac is currently assessing its other potential exposures to TBW and is working with the debtor in possession, the [Federal Deposit Insurance Corp.] and other creditors to quantify these exposures," the 8-K filing says. "At this time, Freddie Mac is unable to estimate its total potential exposure related to TBW's bankruptcy; however, the amount of additional losses related to such exposures could be significant."
On Nov. 18, Freddie Mac filed a proof of claim aggregating approximately $595 million against Colonial Bank, where TBW had maintained bank accounts to deposit borrower funds and to effect their remittance to Freddie Mac. The proof of claim is in regard to payoff funds, borrower payments of principal and interest, as well as escrow funds received by TBW.