Freddie Mac said in a new public filing that not only does it have financial exposure of almost $1.1 billion due to the failure of Taylor, Bean & Whitaker (TBW) but it faces additional losses on the company that "could be significant."

The GSE is waiting to hear word from the Federal Deposit Insurance Corp. (FDIC) regarding a $595 million claim it filed with the agency regarding Colonial Bank of Alabama.

Colonial, which failed in August, was TBW's largest warehouse provider and held servicing related "monies" tied to loans serviced by TBW for Freddie.

The GSE, which is operating under a government conservatorship, had hit TBW with $500 million in loan buyback requests but now that the firm is liquidating it has to stand in line with other creditors.

A spokesman for Freddie said the company is working with the FDIC regarding its $595 million Colonial claim. "We have to stand in line there too," he said. 

Freddie Mac purchased $32.1 billion in mortgages from its seller/servicers in October, its weakest acquisition month since January and a sign that originations are slowing in the primary market.

According to the GSE's new monthly volume summary, purchases fell slightly from September, but rose 66% compared to October of last year, a month in which credit markets came to a halt and the nation's financial system was on the brink of collapse.

Freddie also disclosed that its delinquencies rose yet again to a new record, 3.54% at the end of October, compared with 1.34% in the same period last year. Its delinquency number reflects loans that are 90 days or more past due but exclude loan modifications.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.