DOJ Subpoenas GE in Sub-Prime Probe

Feb 29, 2016

General Electric (GE) has quietly announced that it is the subject of a U.S. Department of Justice (DOJ) probe regarding the sale of sub-prime mortgages in the period leading up to the 2008 crash.

According to a Reuters report, GE acknowledged the DOJ probe in a filing with the U.S. Securities and Exchange Commission—neither GE nor the DOJ publicly announced the investigation. The probe, which began last month with the issuance of subpoenas to GE’s now-defunct WMC Mortgage Corp. and to GE Capital, focuses on subprime mortgages that were originated between January 1, 2005 and December 31, 2007. WMC is also being investigated for possible violations of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

"We will cooperate with the Justice Department's investigation, which is at an early stage," GE said in its filing.

About the author

Phil Hall

Link copied

Published

Feb 29, 2016

Non-QM

NMP Deal Desk: Kind Lending Highlights How Asset Utilization Can Help Qualify More Non-QM Borrowers

Kind Lending executives discussed how asset depletion works, which borrowers may benefit most, and why brokers should take a closer look at borrowers with significant assets but non-traditional income

Mortgage professionals looking for new ways to qualify borrowers with substantial assets but non-traditional income got a closer look at asset utilization lending during NMP's latest Deal Desk webinar, sponsored by Kind Lending.During the June 17 session, Qualify More Borrow...

Industry News

Congress Nears Final Vote On 21st Century ROAD to Housing Act

Senate voted 87-8 to advance House-amended package, with final votes expected in coming days

After months of stalled progress, the House and Senate have reached an agreement to pass the 21st Century ROAD to Housing Act (HR 6644), a sweeping housing package designed to boost housing supply and affordability.The Senate voted 87-8 on July 16 to consider the House-amend...