The lender completed its first POSO on a 57 per cent loan-to-value (LTV) remortgage through Praxis and John Charcol. It is currently implementing a pilot service through 10 packagers and 10 brokers before a full roll-out at the beginning of November.
POSO is currently not available on its buy-to-let (BTL) range but it believed around 60 per cent of its business could be processed this way.
Jeff Knight, director of marketing at GMAC-RFC, said: “This is seen as probably the most revolutionary thing to happen to the mortgage market and we are delighted to be first to market with POSO just as we were first to market with a binding credit decision with no refers.”
A POSO carries the same application fees as a normal GMAC-RFC mortgage and it is hoped the level of business using POSO will increase to near 90 per cent over time.
Praxis said AVMs would have a big impact on its business.
Dudley Aldous, sales and marketing director at Praxis, said: “Broker feedback over the last few days has been exceptional. They had initially been sceptical but once they realised how easy it was, they were hooked.”
Other lenders have said they will be introducing AVMs in the near future.
Tony Capon, head of intermediary sales at Salt, commented: “I’m not surprised GMAC-RFC got there first and it’ll be interesting to see how other lenders react to the news.”
Knight believed the significance of GMAC-RFC’s move will not be recognised until other players move into the market.
“We could have gone earlier but we wanted to be above 50 per cent of business when we launched. The bigger benefits will come when others follow. We see ourselves as innovators and while it is an advantage to be first, if you are on your own it shows no one wants to copy your idea.”
