The acquisition, for an undisclosed sum, leaves the joint founders of National Guarantee, Keith and Dale Robinson, each with a 30% shareholding.
With its outright purchase of High Street Home Loans earlier this year, GMAC-RFC stated its intention to use its status as one of the world's leading financial services organisations to invest in distribution. Acquiring 40% of National Guarantee is a continuation of that strategy.
Stephen Knight, Executive Chairman of GMAC-RFC, says: "We have worked closely with National Guarantee over many years and admired it as a company and as an excellent management team. We look forward to adding value to their business, whilst allowing them the freedom to continue trading independently".
National Guarantee launched in 1996 as a traditional packager serving the broker market, and specialising in non-conforming loans. In September 2000, National Guarantee began marketing mortgages directly to consumers, and this method of distribution now accounts for 95% of its volumes, which will amount to over £300m in total during the current financial year.
Commenting on behalf of National Guarantee PLC, Keith Robinson, Chairman & Chief Executive, said: "We are delighted to have GMAC-RFC as an investor in National Guarantee PLC and to be associated with one of the largest financial institutions in the world. We have enjoyed an excellent relationship over the years, and they will be one of our key partners as we continue our strategy of expansion into the direct to consumer mortgage market".
