Items Tagged with 'GE'


  • 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.
    Read More
  • Equifax names new CEO as fallout from data breach continues

    Mark Begor will take over for Paulino do Rego Barros
    Equifax has found who it believes is the right person to lead the company into its next phase as the credit reporting agency continues to deal with the fallout from its massive data breach that exposed the personal information of nearly 148 million U.S. consumers to hackers. Equifax announced Wednesday that it is naming former GE executive Mark Begor as its next CEO.
    Read More
  • BofA, Wells Post Highest 2008 Originations

    Bank of America Corp. [stock BAC][/stock] and Wells Fargo [stock WFC][/stock] took the top originating positions in the commercial and multifamily market in 2008, according to a report released Tuesday by the Mortgage Bankers Association.
    Read More
  • Latest Miss: GE Blames Capital Markets for Earnings Woes

    So much for those earnings that GE CEO Jeffrey Immelt had said were "in the bag" just a few weeks ago -- in a stunning reversal that caught investors and analysts alike by surprise, General Electric Co. [stock GE][/stock] reported Friday its first decline in quarterly earnings since 2003 and cut its earnings forecast amid historic troubles in the capital and mortgage markets.
    Read More
  • PHH Warns on Debt Financing Pullback; Sale to GE, Blackstone in Doubt

    PHH Corp., the nation's 11th largest mortgage servicer according to National Mortgage News, warned today that its $1.8 billion sale to Blackstone and GE may collapse as numerous investment banks shy away from funding leveraged buyouts. PHH's mortgage operations were to be bought by an affiliate of Blackstone, while GE planned to keep the company's vehicle-leasing unit.
    Read More
  • WMC To Adopt Proposed Federal Guidelines on Subprime Loans

    In a move that will undoubtedly rile some competitors, WMC -- the subprime lending unit of GE -- said late yesterday that it will adopt proposed federal guidelines for subprime lending. The move has gotten the lender some much-needed positive press, too, IMHO, as the Reuters story above attests. Basically, this amounts to qualifying borrowers at the fully-indexed rate.
    Read More
  • Commentary: Mortgage Job Losses Mounting

    Editor's note: After publishing this commentary, I've since been contacted by a spokesperson at Fifth Third Bancorp., who said it would be inaccurate to characterize the move at Home Equity of America as "exiting the business," as I did in my commentary below. The spokesperson noted that the company "will no longer be able to provide products and services to some of its brokers," and said that the memoradum refers only to the company's decision to eliminate it's outside sales function. The spokesperson further clarified that an inside sales team at Fifth Third Bank's Residential Wholesale Mortgage group will continue to originate loans through the HEA brand. Lastly, the company representive said I didn't cite an additional memo sent to brokers that discussed expanded offerings through Fifth Third. None of this information was contained (or even implied) in the original memo I cited as the source of my speculation, so I think I can be reasonably forgiven for taking statements such as "Home Equity of America is no longer able to provide you with products and services" to be synonymous with an exit. Prime lenders start feeling heat: We're now starting to see prime lenders exit due to market conditions. (Yes, you read that correctly: prime lenders). Case in point: Home Equity of America, a mortage lender specializing in prime seconds and operating in 23 states, sent a letter to its brokers this week notifying them that it will exit the business some of them that it would no longer fund their loans. HEA is a subsidiary of Cincinnati-based Fifth Third Bank.
    Read More