|WMC Probe Focuses on FraudFormer subprime lender said to be target of federal probe
Jan. 20, 2012
Federal authorities have launched an investigation into defunct subprime lender WMC Mortgage Corp. to determine whether senior managers condoned mortgage fraud, sources said.
The government wants to find out if WMC used fake documents, overstated income and other fraudulent practices in search of loan approvals.
Former WMC employees accuse the company of condoning the bad behavior.