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.
The program will enroll lenders in master loan purchase agreements so they can sell mortgages as soon as the need arises. Individual approval will not be needed. First mortgages on one- to four-family property will be eligible once they are 60 days or more delinquent.