WMC Mortgage Corporation, also known as WMC or WMC Direct, was a Woodland Hills, California based wholesale originator of subprime residential mortgages.
The company was founded in 1955 as Pacific Western Mortgage Company. It went through several mergers and became known as Weyerhaeuser Mortgage Company (owned by Weyerhaeuser). In the late 1990s it was sold to private equity firm Apollo Global Management, and entered the subprime mortgage lending business. GE Money (formerly GE Consumer Finance), owned by General Electric, bought WMC Mortgage in 2004 for about $500 million.[1][2] WMC Mortgage catered to consumers with less than perfect borrower profiles. The company was among the largest subprime lenders in the United States, ranking seventh in 2005 and fifth in 2006 in the dollar volume of subprime mortgage originations.[3] The original domain for WMC Mortgage was www.wmcmortgage.com
GE ceased WMC's operations in late 2007 due to the subprime market collapse.[4] GE's WMC Mortgage unit filed for Chapter 11 bankruptcy.[5]
References edit
- ^ No. 10 of The Subprime 25: WMC Mortgage Corp./General Electric Co. The Center for Public Integrity May 6, 2009
- ^ Fraud and folly: The untold story of General Electric’s subprime debacle The Center for Public Integrity January 6, 2012
- ^ Understanding the Securitization of Subprime Mortgage Credit by Adam B. Ashcraft and Til Schuermann. Federal Reserve Bank of New York. March 2008.
- ^ Index to the Worst Subprime Originators occ.treas.gov November 13, 2008
- ^ Stempel, Jonathan. "GE's WMC Mortgage unit, felled by financial crisis, files Chapter 11 bankruptcy". Reuters. Archived from the original on 2019-04-25. Retrieved 2023-10-01.
External links edit
- News report by Michael Hudson, iWatch News - Fraud and Folly: The Untold Story of General Electric’s Subprime Debacle (Friday 13 January 2012)
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