Ginnie Mae, Freddie Mac Adjust Fire after Taylor Bean’s Demise

Ginnie Mae, the guarantor of mortgage-backed securities, tapped Bank of America to service about $25 billion in Federal Housing Administration receivables seized from mortgage firm Taylor, Bean & Whitaker last week, according to media reports. At the same time, mortgage seller Freddie Mac â€" whose recent earnings boosted its stock prices 128 percent Monday â€" said it would see "significant" losses from part of its portfolio that had been serviced by Taylor Bean. The fall of Taylor Bean â€" the nation's 12th largest U.S. mortgage originator â€" sent ripples through the government and private lending industries. Last week, the department of Housing and Urban Development suspended the Ocala, Florida-based Taylor Bean as a lender due to allegations of fraud and missed filings. The FHA quickly followed suit, leading Taylor Bean to shutter its operations. More than five percent of Freddie Mac's single-family mortgage purchases last year were Taylor Bean loans, according to a company filing last month with the Securities and Exchange Commission. "We are in the process of determining our total exposure to TBW in the event it cannot perform its contractual obligations to us," Freddie Mac said in the filing. "The amount of our losses in such event could be significant."