GMAC-RFC attributes this impressive rise in profits to a staggering increase in new business leading to record lending figures.
Stephen Knight, Executive Chairman of GMAC-RFC said: "We've had an outstanding year - whilst the UK mortgage market grew by 36% our figures out-performed this with an astounding 80% business growth and record new lending figures for 2002 of £3.3 billion. We achieved this increase in market share through a combination of timely and competitive products in all market sectors, good service, distributor initiatives and a dedicated and hard working staff."
GMAC-RFC's strategy as a leading creator and trader of financial assets was re-inforced by its asset sale transactions during 2002, which included the trading of £2.6 billion of mortgages. This was achieved by £1.5 billion in portfolio sales to UK lending institutions, and £1.1 billion in securitisations.
In a move to further increase market share, GMAC-RFC recently began testing its online point of sale decisioning tool for intermediaries, and has also outsourced its post completion mortgage administration to HomeLoan Management Limited, saving costs that will be reinvested in the competitiveness of the product range.
Commenting on GMAC-RFC's future plans, Stephen Knight, Executive Chairman said: "We will continue to invest in distribution and new technology, which should substantially increase productivity, service and new business. With competitive products in all sectors, we will increase our scope for growth, whilst the trading of our assets continues to manage our capital base more effectively.
"As for the future of the market as a whole," continued Knight, "with a 200,000 annual shortfall in relation to demand for new household creation, inflation benign, affordability good, interest rates low, a growing economy and broadly stable unemployment, we do not believe that a good case can be made for a collapse of house prices in 2003. There is always the caveat that consumers can talk themselves into a bear market and we do expect price adjustments at the first time buyer end of the market but, overall, the outlook is still positive."
