WMC Mortgage Corporation

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

April 24, 2019

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.

GE to pay $1.5 billion fine over WMC Mortgage subprime loans

Reaches settlement with DOJ

April 12, 2019

Ben Lane

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.

GE claims it reached $1.5 billion settlement with DOJ over WMC subprime loans

No official word from DOJ yet

January 31, 2019

Ben Lane

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.

GE books $1.5 billion for potential settlement with DOJ over WMC subprime loans

GE sold WMC in 2007, but problems still remain

May 7, 2018

Ben Lane

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.

GE gets subpoena over subprime mortgage operation

DOJ investigating whether GE broke any laws from 2005 to 2007

February 29, 2016

Cynthia Barraza

GE disclosed in its annual report on Friday that its lending unit, GE Capital, and defunct subprime lending unit WMC, received subpoenas in January. GE said it will cooperate with the Justice Department's investigation, which is at an early stage.

GE, WMC Cut Back on Lending

April 13, 2007

Paul Jackson

Reuters is reporting that GE unit WMC mortgage slashed origination volume by more than two-thirds during the fourth quarter of 2006, in response to quickly deteriorating conditions in the subprime market.