News
Defunct Subprime Unit Could Land GE In Hot Water As DoJ Subpoenaes Records
March 1, 2016
Wikicommons
General Electric is joining the long list of financial firms caught in the legal quagmire of lending practices related to the pre-crisis subprime mortgage market.
The Depart of Justice has subpoenaed records relating to GE’s now-defunct subprime mortgage business, WMC Mortgage Corp, with 14 lawsuits pending, HousingWire reports.
The investigation concerns the purchase or sale of residential mortgage loans between early 2005 and late 2007. The cases are pending in Connecticut, Minnesota and New York, involving claims on roughly $11B of failed mortgage loans. [HW]
