Moody’s Warns of Increased Losses on Taylor, Bean & Whitaker RMBS

Moody’s Investors Service has placed the servicer rating of mortgage lender Taylor, Bean & Whitaker on review for possible downgrade as the loss severity of its residential mortgage-backed securities (RMBS) looks to increase. Taylor, Bean & Whitaker, which was suspended from Federal Housing Administration-insured originations last week, said at the time it planned to continue its servicing activities. With Ginnie Mae having stepped in and placed Taylor, Bean & Whitaker’s portfolio of Ginnie securities under the servicing responsibilities of Bank of America (BAC), its remaining securities are facing increased scrutiny. The stability of Taylor, Bean & Whitaker’s servicing platform will influence the performance of its RMBS deals, Moody’s said. The loss severity levels on Taylor, Bean & Whitaker’s RMBS are likely to trend upward in the future, Moody’s said in the first issue of ResiLandscape, a newsletter for investors. The newsletter, which goes bi-weekly in September, also introduced Moody’s new RMBS loss tracker, a snapshot of ultimate losses realized against expected future losses. Write to Diana Golobay.