GE the subject of a Department of Justice probe

HousingWire staffer Cynthia Barraza notes a Reuters report that the Department of Justice subpoenaed General Electric's records from WMC Mortgage Corp., a defunct subprime lending unit.

The Reuters piece says that GE learned the DOJ was combing through its files of bought and sold residential mortgage loans between the beginning of 2005 and the end of 2007--the peak of the subprime debacle. The article details a number of lawsuits relating to pending mortgage loan repurchase claims involving WMC. The article notes:

The amounts of the claims at issue in these cases reflect the purchase price or unpaid principal balances of the mortgage loans at issue at the time of purchase and do not give effect to pay downs, accrued interest or fees, or potential recoveries based upon the underlying collateral.

All of the mortgage loans involved in these lawsuits are included in WMC's reported claims at Dec. 31, 2015.

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