Let’s Get Ready to Rumble!!!
Freddie in Uproar Over B of A Probe Tied to TBW
Freddie Mac is trying to prevent Bank of America from investigating its business relationship with the failed Taylor Bean & Whitaker, noting that the cost of the probe could cost the GSE $10 million or more. According to a report by Dow Jones, Freddie is urging the Federal Bankruptcy Court in Jacksonville, Fla., not to allow Bank of America to carry out the investigation. TBW, a nondepository mortgage banker, was a larger seller/servicer to Freddie. The GSE seized control of some of TBW’s servicing rights when the lender failed last year. B of A is owed money by TBW. “The breadth of the discovery sought by B of A is so vast that Freddie Mac estimates that it will cost at a minimum $10 million to provide the discovery sought,” the GSE says in a recent court filing. “B of A seeks to unfairly shift the cost of compiling and providing such records to Freddie Mac by means of a broad ‘fishing expedition.'” Bank of America is seeking access to Freddie Mac’s books and to question its officials about the mortgage finance company’s “extensive business relationship” with Ocala, Fla.-based TBW.