Bankrupt Taylor Bean Unit To Seek $800M From Freddie Mac

Law360, New York (July 10, 2012, 9:20 PM EDT) -- Ocala Funding LLC, a troubled funding arm of failed lender Taylor Bean & Whitaker Mortgage Corp., filed for bankruptcy Tuesday, proposing to claw back more than $800 million from Freddie Mac to pay backers Deutsche Bank AG and BNP Paribas.

Ocala, which provided funding for TBW's massive mortgage business before it collapsed, said $805 million paid to Freddie Mac from September 2008 to August 2009 served no purpose except to cover up a top-level fraud that ultimately took down TBW.

“These transfers of Ocala’s assets provided...
To view the full article, register now.