A source, who wished to remain anonymous, told Mortgage Introducer that the order to start pulling existing mortgage offers had come from senior management at GMAC-RFC. The source claimed GMAC-RFC was under huge pressure following the global credit crunch and was following Northern Rock into potential difficulties.
He said: “What HSHL is doing is wrong. I’ve only seen lenders do something like that when they were about to go bust. But how does this stack with ‘Treating Customers Fairly’? The underwriters have been told to refuse business for virtually any reason and cancel existing offers.”
He added that one of the reasons being given was that the offer would not be responsible lending, but he maintained that if this was the case it would make HSHL’s mortgage book for the last four or five years irresponsible lending.
Another source indicated that GMAC-RFC was preparing to make serious cutbacks in its business dealings.
However, Julie Gaskin, corporate relations manager for GMAC-RFC, said: “HSHL employs rigorous control procedures. As with any underwriting process, cases submitted may be declined if they do not meet the requirements.”
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