GE's WMC Subprime Unit Sells $3 Billion in Loans
General Electric's subprime lending arm WMC Mortgage sold about $3 billion in nonprime loans in the second quarter, lowering the volume of loans on its books to about $1.5 billion, a company spokesman said Tuesday.
The loans sold included a mix of first and second liens, said GE Money spokesman Michael Ettlemyer.
The Burbank, California-based business was one of scores of lenders targeting the subprime market, or borrowers with weaker credit histories. Defaults in this segment of the market have surged this year, leading some borrowers to lose their homes and causing about 50 subprime lenders to close.
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