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GE Finalizes $1.5 Billion DOJ Settlement Over Old Subprime Unit

April 12, 2019, 5:34 PM

General Electric Co. finalized an agreement to pay $1.5 billion to settle a U.S. investigation into the manufacturer’s defunct subprime-mortgage business.

The civil penalty will resolve claims that WMC Mortgage, a former unit of GE’s finance arm, misrepresented the quality of residential mortgage-backed securities, the U.S. Justice Department said in a statement April 12. GE, which first revealed the agreement in principle earlier this year, didn’t admit liability.

“The financial system counts on originators, which are in the best position to know the true condition of their mortgage loans, to make accurate and complete representations about their products,” Assistant Attorney ...