Articles Tagged with ''subprime mortgages''

GE's subprime lender WMC Mortgage files for Chapter 11 bankruptcy

Comes weeks after GE agreed to pay $1.5 billion fine for WMC's activities
General Electric is moving closer to putting its failed attempt to capitalize on the subprime lending boom into its rearview mirror. Earlier this month, GE agreed to pay a fine of $1.5 billion as part of a settlement with the Department of Justice over the pre-crisis lending activities of the company's shuttered subprime lending unit, WMC Mortgage. And this week, WMC Mortgage filed for Chapter 11 bankruptcy.
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No-income, no-asset mortgages are back (at one lender, at least)

360 Mortgage Group plans as much as $1 billion in “NINA” loans
Back in the Wild, Wild West era of mortgage lending before the housing crisis, NINJA loans (loans given to borrowers with no income, no job, and no assets required) became quite the rage. NINJA loans have disappeared from the market, likely never to be seen again, but one lender is about to bring back a similar ghost of the mortgage market’s past: the NINA loan.
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GE to pay $1.5 billion fine over WMC Mortgage subprime loans

Reaches settlement with DOJ
General Electric will pay a fine of $1.5 billion as part of a settlement with the Department of Justice over the pre-crisis lending activities of GE’s shuttered subprime lending unit, WMC Mortgage. The lender allegedly misrepresented the quality of the “majority” of its loans, which were sold to investors as part of residential mortgage-backed securities between 2005 and 2007.
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GE claims it reached $1.5 billion settlement with DOJ over WMC subprime loans

No official word from DOJ yet
It appears that General Electric may finally be close to putting its shuttered subprime lending unit completely in its past. It’ll just cost the company $1.5 billion to do so. GE revealed Thursday that it reached a tentative agreement with the Department of Justice that would see GE pay a fine of $1.5 billion for the lending activities of WMC Mortgage.
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GE books $1.5 billion for potential settlement with DOJ over WMC subprime loans

GE sold WMC in 2007, but problems still remain
General Electric may be facing a fine of at least $1.5 billion for the lending activities of its shuttered subprime lending unit, WMC Mortgage. GE revealed last week that it booked a reserve of $1.5 billion that may be used as a settlement with the Department of Justice over the company’s subprime lending from 2005 through 2007.
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Carrington Mortgage Services launches subprime lending program

Claims manual underwriting process is safer than other non-prime programs
Carrington Mortgage Services is launching a mortgage lending program that looks an awful lot like pre-crisis subprime lending, but the company claims that its new “non-prime” loans are much safer than the subprime loans of the mid-2000s. Carrington’s loan program allows credit scores as low as 500. “Recent credit events” and a “history of late payments” are acceptable as well.
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Barclays agrees to pay $2 billion to settle crisis-era RMBS fraud charges

Two subprime mortgage bond traders also fined $2 million
Barclays Capital will pay $2 billion to the federal government to settle charges brought against the bank by the Department of Justice, which accused the company of misleading investors about the quality of the underlying subprime and Alt-A mortgages in $31 billion in mortgage bonds, which, as the DOJ put it, “proved to be catastrophic failures.”
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Former Deutsche Bank head subprime mortgage bond trader fires back at U.S. fraud charges

Denies all charges, accuses government of ‘concocting a baseless theory of fraud’
Paul Mangione, the former head of subprime mortgage trading at Deutsche Bank who stands accused over overseeing systemic mortgage bond fraud during the run-up to the financial crisis, says that the government kowtowed to public pressure to see individuals held responsible for the financial crisis by filing lawsuit against him that is wrong, unfair, and without merit.
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