Freddie Mac, the mortgage-finance company under government control being supported by taxpayers, said the collapse of lender Taylor, Bean & Whitaker Mortgage Corp may cause it 'significant' losses.

Taylor Bean, the 12th-largest U.S. mortgage originator, shuttered its lending business last week after being suspended by US agencies and Freddie Mac. The Federal Housing Administration cited possible financial-statement fraud.

'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.'

bloomberg.com