The U.S. government and a group of private investors plan to spin off the subprime lending and servicing division of American International Group (AIG), by selling $500 million worth of stock to the public – through a REIT structure.

One mortgage banker, requesting his name not be used, said he has already been approached by the AIG unit – called Springleaf Financial – about selling what he called “hard money” mortgages to the company.

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