GE to pay $1.5 billion penalty related to subprime mortgages


FILE PHOTO: The logo of U.S. conglomerate General Electric is pictured at the company’s site of its energy branch in Belfort, France, February 5, 2019. REUTERS/Vincent Kessler/File Photo

(Reuters) – General Electric Co will pay a $1.5 billion civil penalty to resolve claims related to subprime residential mortgage loans offered by its WMC Mortgage unit, the U.S. Department of Justice said on Friday.

The settlement resolves claims that GE and WMC misrepresented the quality of the loans, as well as WMC’s internal quality and fraud controls, in connection with the marketing and sale of residential mortgage-backed securities.

Reporting by Jonathan Stempel in New York, Editing by Franklin Paul

Source : Denver Post