WMC Mortgage LLC, a subsidiary of GE Capital US Holdings Inc., filed for Chapter 11 protection in a federal bankruptcy court in Delaware after paying more than $1.5 billion to settle third-party claims over subprime mortgages.
The GE Capital unit bought WMC Mortgage in 2004, and originated more than $65 billion in mortgage loans from 2005 to 2007. The Woodland Hills-Calif.-based company discontinued its mortgage origination business in 2007.
The company said it has made exhaustive efforts to resolve all of its liabilities after ending its origination business, but due to many pending claims and limited cash on hand, it ...
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