WMC Mortgage Subprime Loan Investigation
General Electric paid a civil penalty of $1.5 billion under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 to resolve claims involving subprime residential mortgage loans originated by WMC Mortgage, a GE subsidiary. WMC, GE, and their affiliates allegedly misrepresented the quality of WMC’s loans and the extent of WMC’s internal quality and fraud controls in connection with the marketing and sale of residential mortgage-backed securities; as a result, investors suffered billions of dollars in losses.
- Misconduct Type
- Enforcement Agency
- Contracting Party
- Court Type
- Date of Settlement Announcement