Federal Home Loan Mortgage Corp. v. Deloitte & Touche LLP
In the matter Federal Home Loan Mortgage Corp. v. Deloitte & Touche LLP, provided expert testimony on behalf of Freddie Mac in its dispute with Deloitte & Touche LLP (Deloitte) over improperly performed audits on Taylor Bean & Whitaker Mortgage Corporation (TBW). Freddie Mac alleged that, as a result of these audits and Deloitte’s failure to detect that TBW’s financial condition was fraudulently represented, Deloitte was responsible for the losses Freddie Mac sustained from loans purchased from TBW. Freddie Mac further claimed that many of these loans were in breach of the representations and warranties TBW made to Freddie Mac and, as a result of TBW’s collapse, it was unable to fulfill its repurchase obligations associated with those loans. Estimated damages to compensate Freddie Mac for all losses due to its purchase or guarantee of TBW loans, and for TBW’s failure to repurchase loans that breached the associated representations and warranties. The parties agreed to a settlement.