WMC Sells $3B of Subprime Loans

WMC Mortgage, Irvine, Calif., recently auctioned off $3 billion in subprime loans but offered few details on the sale.In a statement, the General Electric-owned company said only that the mortgages included a mix of performing and "seasoned" loans. It did not disclose price or the identity of the buyer(s). Like many subprime lenders, WMC has been forced to repurchase delinquent subprime mortgages from investors in the secondary market. The company, so far, has declined to quantify its buyback problems. After the auction, WMC now has $1.5 billion in loans on its balance sheet. According to the Quarterly Data Report, it ranked 10th among subprime lenders in the first quarter, originating $3.4 billion in loans, a 50% decline from the total for the same period a year earlier.