Brief: GE's loans arrears a headache for Pepper

Pepper Australia has launched its second securitisation of mortgages originated by GE Capital. Pepper purchased a A$5 billion mortgage book from GE in 2011. Yesterday, Pepper went to the market seeking $500 million. In a pre-sale report, Fitch Ratings noted that the GE book has experienced arrears, losses and mortgage insurance claims "well in excess" of those experienced by other prime residential mortgage originators in Australia.