GE Capital's defunct subprime shop files Chapter 11

Crisis Fotolia right side
By Alexander Saeedy
23 Apr 2019

WMC Mortgage LLC, the subprime mortgage origination shop owned by GE Capital since 2004, has officially filed for a Chapter 11 reorganization as its parent company attempts to restructure the business and move past legacy costs tied to the financial crisis.

On April 12, GE agreed to pay $1.5bn on behalf of WMC to the Department of Justice for alleged misrepresentations in the purchase and sale of subprime loans included in residential mortgage-backed securities, although the parties did not admit any formal liability. GE Capital had also provided around ...

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