WMC Auctioning Off Scratch & Dent Loans

The General Electric-owned WMC Mortgage is trying to sell "hundreds of millions" of dollars in subprime scratch and dent loans, according to one market participant.A WMC spokeswoman confirmed that loans are being auctioned but said she could not provide a dollar amount or any details on the pools. "It's being done in the standard course of business," she said, adding that if the company does not like the bid it will keep the loans in portfolio. A subprime wholesaler based in Burbank, Calif., WMC ranks fourth nationwide in non-prime production, according to the Quarterly Data Report. (For more details see the May 14 edition of National Mortgage News.)