SAN FRANCISCO -- GE Capital Mortgage Corp. has launched a conduit for non-performing home loans that will enable small and midsize lenders to sell sour mortgages quickly.
GE Capital announced the program at the Western Secondary Mortgage Conference here. It will not only buy the loans but fund them with its own cash and hold them in portfolio. It expects to hold the loans typically for about 24 months. The profitability of the program will depend on the skill of GE Capital in managing and disposing of the problem assets.