GE Money retail shops sell few sub-prime mortgages
GE Money provided a window into one of their niche mortgage businesses, with publication of the details for the securitisation of around $580 million in sub-prime and non-conforming loans. GE is refinancing the loans through the Q9 Trust. However, Adelaide Bank is doing most of the work for GE to sort out the securitisation of the loans. Adelaide services the loans on behalf of GE. Given that the $580 million pool represents around 13 months’ sales and 20 per cent arises from the sales efforts of GE’s 117 retail outlets Australia-wide, these outlets look to be responsible for less than one non-conforming loan each second month, based on the average loan size.