Items Tagged with 'WMC'

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  • 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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  • 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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  • Report: GE Looks to Sell WMC

    Bloomberg reports this morning: General Electric Co. plans to sell WMC Mortgage, the company's three-year-old U.S. subprime mortgage unit, following a surge in defaults by borrowers. "The mortgage industry has greatly changed since the purchase of WMC,'' Laurent Bossard, chief executive officer of the division, said in an e-mail to employees yesterday. "The current subprime market environment has made a significant negative impact on the business.''
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  • 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.
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  • WMC Gutted, Lays Off Half of Workforce

    Confirming industry rumors that had surfaced earlier in the week, GE Money representatives yesterday confirmed through various media outlets that layoffs had affected 50 percent of the company's national workforce at Burbank-Calif.-based WMC Mortgage on Thursday -- roughly 750 employees in total were given their walking papers. GE Money had been very tight-lipped regarding its plans, with spokesperson Michael Ettlemyer telling HW on Wednesday afternoon that the company was not planning on making additional cuts. HW had approached the company earlier on Wednesday regarding the rumors of pending layoffs.
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  • WMC Layoffs

    GE unit WMC mortgage is laying off 20 percent of its workforce amid problems in the subprime industry, according to a report from Bloomberg.
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